1. Compute Welch's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar. 2. Compute Worldwide's total 2024 payroll tax expense for Welch. 3. Make the journal entry to record Worldwide's expense for Welch's total earnings for the year, his payroll deductions, and net pay. Debit Salaries Expense and Bonus Expense as appropriate. Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required. 4. Make the journal entry to record the accrual of Worldwide's payroll tax expense for Welch's total earnings. 5. Make the journal entry for the payment of the payroll withholdings and taxes.
1. Compute Welch's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar. 2. Compute Worldwide's total 2024 payroll tax expense for Welch. 3. Make the journal entry to record Worldwide's expense for Welch's total earnings for the year, his payroll deductions, and net pay. Debit Salaries Expense and Bonus Expense as appropriate. Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required. 4. Make the journal entry to record the accrual of Worldwide's payroll tax expense for Welch's total earnings. 5. Make the journal entry for the payment of the payroll withholdings and taxes.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:K
Louis Welch is general manager of Worldwide Salons.
During 2024, Welch worked for the company all year at al
$9,600 monthly salary. He also earned a year-end bonus.
equal to 20% of his annual salary. Welch's federal income
tax withheld during 2024 was $1,152 per month, plus
$5,069 on his bonus check. State income tax withheld
came to $160 per month, plus $120 on the bonus. FICA
tax was withheld on the annual earnings. Welch
authorized the following payroll deductions: Charity Fund
contribution of 3% of total earnings and life insurance of
$30 per month.
Requirements
1. Compute Welch's gross pay, payroll deductions, and net pay for the full year
2024. Round all amounts to the nearest dollar.
2. Compute Worldwide's total 2024 payroll tax expense for Welch.
3. Make the journal entry to record Worldwide's expense for Welch's total
earnings for the year, his payroll deductions, and net pay. Debit Salaries
Expense and Bonus Expense as appropriate. Credit liability accounts for the
payroll deductions and Cash for net pay. An explanation is not required.
ext pages
4. Make the journal entry to record the accrual of Worldwide's payroll tax
expense for Welch's total earnings.
5. Make the journal entry for the payment of the payroll withholdings and taxes.
Print
Gross Pay
Worldwide incurred payroll tax expense on Welch
for FICA tax. The company also paid state
unemployment tax and federal unemployment tax.
i (Click the icon to view payroll tax
rate information.)
Read the requirements.
Done
Get more help.
(...)
Requirement 1. Compute Welch's gross pay, payroll deductions, and net pay for the full year 2024. Round all
amounts to the nearest dollar.
Begin by computing Welch's gross pay for the year. (Round all amounts to the nearest dollar.)
Gross pay:
- X
Clear all
Check answer
Expert Solution
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Step 1: Define Payroll
VIEWStep 2: Computation of Gross Pay, Deduction and Net Pay
VIEWStep 3: Calculation of Total Payroll Tax Expenses
VIEWStep 4: Required Journal Entry
VIEWStep 5: Required Journal Entry for Payroll Tax Expenses
VIEWStep 6: Required Journal entry for payment of Payroll taxes and withhold
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