College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter7: Employee Earnings And Deductions
Section: Chapter Questions
Problem 5PA
Related questions
Question
ch
![Bonny Strand's regular hourly wage rate is $16, and she receives an hourly rate of $24 for work in excess of 40 hours. During a January pay period, Bonny works 44 hours. Bonny's federal income tax withholding is $85, and she has no other deductions.
Prepare a tabular summary for Bonny's employer to record (a) Bonny's pay for the period and (b) the payment of Bonny's wages. Use January 15 for the end of the pay period and the payment date. Assume that the FICA tax rate is 7.65%. (Round answers to 2 decimal places, eg. 15.25. If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity,
place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity Item that was reduced.)
(a)
(b)
Jan, 15 $
Jan. 15
Assets
Cash
=
$
Salaries & Wages Pay.
$
Liabilities
Fed. Inc. Taxes Pay.
$
FICA Taxes Pay.
$
Common Stock
✦
$
Revenue
Stockholders' Equity
-
$
Retained Earnings
Expense
$
Dividend
Interest Expense
Salaries & Wages Expense
Sales Revenue
Ticket Revenue](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2c2a5a6a-1705-4081-88a0-53da8029a49c%2Fccf3e2e9-bc97-4d14-aa67-bfa9cf5168d1%2Fbi6x1nj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Bonny Strand's regular hourly wage rate is $16, and she receives an hourly rate of $24 for work in excess of 40 hours. During a January pay period, Bonny works 44 hours. Bonny's federal income tax withholding is $85, and she has no other deductions.
Prepare a tabular summary for Bonny's employer to record (a) Bonny's pay for the period and (b) the payment of Bonny's wages. Use January 15 for the end of the pay period and the payment date. Assume that the FICA tax rate is 7.65%. (Round answers to 2 decimal places, eg. 15.25. If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity,
place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity Item that was reduced.)
(a)
(b)
Jan, 15 $
Jan. 15
Assets
Cash
=
$
Salaries & Wages Pay.
$
Liabilities
Fed. Inc. Taxes Pay.
$
FICA Taxes Pay.
$
Common Stock
✦
$
Revenue
Stockholders' Equity
-
$
Retained Earnings
Expense
$
Dividend
Interest Expense
Salaries & Wages Expense
Sales Revenue
Ticket Revenue
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