Employees' earnings and taxesA weekly payroll summary made from labor time records showsthe following data for Musketeer Manufacturing Company:LO2LO3HourlyRateHoursEmployeeClassificationRegularOvertimeBrown, D.Direct$12402Jackson, D.Direct12403Love, J.Direct15404Anderson, C.Indirect40Raymond, B.Indirect1840Overtime is payable at one-and-a-half times the regular rate ofpay for an employee and is distributed to all jobs worked onduring the period.a. Determine the net pay of each employee. The income taxeswithheld for each employee amount to 15% of the grosswages.b. Prepare journal entries for the following:1. Recording the payroll.2. Paying the payroll.

The process of recording business transactions in the books of accounts for the first time is known…

Answered: Employees' earnings and taxes A weekly…

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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Employees' earnings and taxes A weekly payroll summary made from labor time records shows the following data for Musketeer Manufacturing Company: LO2 LO3 Hourly Rate Hours Employee Classification Regular Overtime Brown, D. Direct $12 40 2 Jackson, D. Direct 12 40 3 Love, J. Direct 15 40 4 Anderson, C. Indirect 40 Raymond, B. Indirect 18 40 Overtime is payable at one-and-a-half times the regular rate of pay for an employee and is distributed to all jobs worked on during the period. a. Determine the net pay of each employee. The income taxes withheld for each employee amount to 15% of the gross wages. b. Prepare journal entries for the following: 1. Recording the payroll. 2. Paying the payroll 3. Distributing the payroll. (Assume that overtime premium will be charged to all jobs worked on during the period. 4. The employer’s payroll taxes. (Assume that none of the employees has achieved the maximum wage bases for FICA and unemployment taxes.)
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Employees' earnings and taxes A weekly payroll summary made from labor time records sho the following data for Musketeer Manufacturing Company: Hourly Rate Hours Overtim Employee Brown, D. Jackson, D. Classification Regular Direct $12 40 2 Direct 12 40 Love, J. Direct 15 40 4 doroon Indiroot 40