Computing and recording gross and net pay Hugh Stanley manages a Dairy House drive-in. His straight-time pay is $12 per hour, with time-and-a-half for hours in excess of 40 per week. Stanley’s payroll deductions include withheld income tax of 20%, FICA tax, and a weekly deduction of $5 for a charitable contribution to United Way. Stanley worked 58 hours during the week. Requirements Compute Stanley’s gross pay and net pay for the week. Assume earnings to date are $18,000. Journalize Dairy Houses wages expense accrual for Stanley’s work. An explanation is not required. Journalize the subsequent payment of wages to Stanley.
Computing and recording gross and net pay Hugh Stanley manages a Dairy House drive-in. His straight-time pay is $12 per hour, with time-and-a-half for hours in excess of 40 per week. Stanley’s payroll deductions include withheld income tax of 20%, FICA tax, and a weekly deduction of $5 for a charitable contribution to United Way. Stanley worked 58 hours during the week. Requirements Compute Stanley’s gross pay and net pay for the week. Assume earnings to date are $18,000. Journalize Dairy Houses wages expense accrual for Stanley’s work. An explanation is not required. Journalize the subsequent payment of wages to Stanley.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Computing and recording gross and net pay
Hugh Stanley manages a Dairy House drive-in. His straight-time pay is $12 per hour, with time-and-a-half for hours in excess of 40 per week. Stanley’s payroll deductions include withheld income tax of 20%, FICA tax, and a weekly deduction of $5 for a charitable contribution to United Way. Stanley worked 58 hours during the week.
Requirements
- Compute Stanley’s gross pay and net pay for the week. Assume earnings to date are $18,000.
- Journalize Dairy Houses wages expense accrual for Stanley’s work. An explanation is not required.
- Journalize the subsequent payment of wages to Stanley.
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