3. On December 30, Nancy Sheridan hired an employee, Tom Shanahan, to help her with themedical billing. His first weekly pay period ends January 7 and he will be paid on January 14. Heearns $17.25 per hour. During the 40-hour weekly pay period, Tom worked 48 hours. HisFederal income tax is $122. Social Security tax is 6.2% and Medicare tax is 1.45%.a. Compute Tom's pay as of January 7.RegularearningsDateOvertimeearningsGross pay(WagesExpense)b. Record the General Journal entry for Tom's January 7 pay.DateDescriptionSocialFederalincome taxSecuritypayable tax payableDescriptionDebitMedicaretax payablec. The FUTA rate for Sheridan is 0.6% and the SUTA rate is 5.4%. Record the General Journalentry for the January 14 employer's share payroll taxes.DebitCreditNet pay(Wagespayable)Credit

In the context of the given question, we are required to compute the net wages payable and prepare…

3. On December 30, Nancy Sheridan hired an employee, Tom Shanahan, to help her with the medical billing. His first weekly pay period ends January 7 and he will be paid on January 14. He earns $17.25 per hour. During the 40-hour weekly pay period, Tom worked 48 hours. His Federal income tax is $122. Social Security tax is 6.2% and Medicare tax is 1.45%. a. Compute Tom's pay as of January 7. Gross pay Overtime earnings (Wages Expense) Regular earnings Date b. Record the General Journal entry for Tom's January 7 pay. Description Date Federal Social income tax payable tax payable Medicare Security tax payable Description Debit c. The FUTA rate for Sheridan is 0.6% and the SUTA rate is 5.4%. Record the General Journal entry for the January 14 employer's share payroll taxes. Credit Debit Net pay (Wages payable) Credit

3. On December 30, Nancy Sheridan hired an employee, Tom Shanahan, to help her with the medical billing. His first weekly pay period ends January 7 and he will be paid on January 14. He earns $17.25 per hour. During the 40-hour weekly pay period, Tom worked 48 hours. His Federal income tax is $122. Social Security tax is 6.2% and Medicare tax is 1.45%. a. Compute Tom's pay as of January 7. Gross pay Overtime earnings (Wages Expense) Regular earnings Date b. Record the General Journal entry for Tom's January 7 pay. Description Date Federal Social income tax payable tax payable Medicare Security tax payable Description Debit c. The FUTA rate for Sheridan is 0.6% and the SUTA rate is 5.4%. Record the General Journal entry for the January 14 employer's share payroll taxes. Credit Debit Net pay (Wages payable) Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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