Cracks of Dawns, a clothing resale store, employs one salesperson, Dia Hollace. Hollace's straight-time wage is $50 per hour, with time-and-a-half pay for hours above 40. Cracks of Dawns withholds income tax (20%), FICA-OASDI (6.2%), and FICA-Medicare (1.45%) from Hollace's pay. Cracks of Dawns also pays payroll taxes for FICA-OASDI (6.2%), FICA-Medicare (1.45%), and state and federal unemployment (5.4% and 0.69 respectively). During the week ended December 26, Hollace worked 44 hours. Prior to this week, she had earned $1,700. Read the requirements. Requirement 1. Compute Hollace's gross pay and net (take-home) pay for the week. Begin with the computation of gross pay. (Round all amounts to the nearest whole dollar.) Gross Pay: Gross Pay C Requirements (Round all amounts to the nearest dollar.) 1. Compute Hollace's gross pay and net (take-home) pay for the week. 2. Record the payroll entries that Cracks of Dawns would make for each of the following. a. Accrual of salaries and wages expense and subsequent payment related to Hollace b. Employer payroll taxes accrual related to Hollace c. Payment of all payroll taxes (employee and employer related) 3. How much was Cracks of Dawns' total payroll expense for the week? X

Cracks of Dawns, a clothing resale store, employs one salesperson, Dia Hollace. Hollace's straight-time wage is $50 per hour, with time-and-a-half pay for hours above 40. Cracks of Dawns withholds income tax (20%), FICA-OASDI (6.2%), and FICA-Medicare (1.45%) from Hollace's pay. Cracks of Dawns also pays payroll taxes for FICA-OASDI (6.2%), FICA-Medicare (1.45%), and state and federal unemployment (5.4% and 0.69 respectively). During the week ended December 26, Hollace worked 44 hours. Prior to this week, she had earned $1,700. Read the requirements. Requirement 1. Compute Hollace's gross pay and net (take-home) pay for the week. Begin with the computation of gross pay. (Round all amounts to the nearest whole dollar.) Gross Pay: Gross Pay C Requirements (Round all amounts to the nearest dollar.) 1. Compute Hollace's gross pay and net (take-home) pay for the week. 2. Record the payroll entries that Cracks of Dawns would make for each of the following. a. Accrual of salaries and wages expense and subsequent payment related to Hollace b. Employer payroll taxes accrual related to Hollace c. Payment of all payroll taxes (employee and employer related) 3. How much was Cracks of Dawns' total payroll expense for the week? X

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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