Christine Erickson is the payro

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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Christine Erickson is the payroll accountant for Multi Winds Energy of Lincoln, Nebraska. The employees of Multi Winds
Energy are paid biweekly. An employee, Linda Larson, comes to her on September 9 and requests a pay advance of
$1,040, which she will pay back in equal parts on the September 24 and October 22 paychecks. Ind is single with no
dependents and is paid $54,500 per year. She contributes 5 percent of her pay to a 401(k) plan...
paycheck deducted for a court-ordered garnishment. Assume that no pre-tax deductions exist for any employee and
as $250 per
box 2 is not checked.
Required:
Compute her net pay for her September 24 paycheck. Her state income tax rate is 6.84 percent. Use the wage-bracket
tables in Appendix C to determine the federal income tax withholding amount. You do not need to complete the
number of hours. (Round your intermediate calculations and final answer to 2 decimal places.)
Answer is complete but not entirely correct.
Not pay
$
759.80x
Transcribed Image Text:Christine Erickson is the payroll accountant for Multi Winds Energy of Lincoln, Nebraska. The employees of Multi Winds Energy are paid biweekly. An employee, Linda Larson, comes to her on September 9 and requests a pay advance of $1,040, which she will pay back in equal parts on the September 24 and October 22 paychecks. Ind is single with no dependents and is paid $54,500 per year. She contributes 5 percent of her pay to a 401(k) plan... paycheck deducted for a court-ordered garnishment. Assume that no pre-tax deductions exist for any employee and as $250 per box 2 is not checked. Required: Compute her net pay for her September 24 paycheck. Her state income tax rate is 6.84 percent. Use the wage-bracket tables in Appendix C to determine the federal income tax withholding amount. You do not need to complete the number of hours. (Round your intermediate calculations and final answer to 2 decimal places.) Answer is complete but not entirely correct. Not pay $ 759.80x
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