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FINANCIAL ACCOUNTING
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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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
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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