It is August 2020.  You are calculating the monthly paycheck, including employee withholding, and employer payroll related expenses for Bonnie Bigwig.  Her pay through July is $110,000.  Her August gross pay $20,000.  Her Federal income tax withholding is at the 25% rate, her state withholding is at the 5% rate.  (Ignore local income tax.)  Her health insurance (all paid by the company) is $1,500 / month.  She contributes $1,000 / month to the United Way. Give the journal entry to pay Bonnie.  Also, give the journal entry to record the employer payroll related expenses.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  It is August 2020.  You are calculating the monthly paycheck, including employee withholding, and employer payroll related expenses for Bonnie Bigwig.  Her pay through July is $110,000.  Her August gross pay $20,000.  Her Federal income tax withholding is at the 25% rate, her state withholding is at the 5% rate.  (Ignore local income tax.)  Her health insurance (all paid by the company) is $1,500 / month.  She contributes $1,000 / month to the United Way.

Give the journal entry to pay Bonnie.  Also, give the journal entry to record the employer payroll related expenses.

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