Karim Enterprises has two hourly employees, Kala and Carl. Both employees earn overtime at the rate of 1½ times the hourly rate for hours worked in excess of 40 per week. Assume the Social Security tax rate is 6 percent on the first $110,000 of wages and the Medicare tax rate is 1.5 percent on all earnings. Federal income tax withheld for Kala and Carl was $250 and $220 respectively. The following information is for the first week in January 2010: Employee Kala Carl Hours Worked 52 47 Wage Rate per Hour $20 $25 Required a. Calculate the gross pay for each employee for the week. b. Calculate the net pay for each employee for the week. c. Prepare the general journal entry to record payment of the wages.

Karim Enterprises has two hourly employees, Kala and Carl. Both employees earn overtime at the rate of 1½ times the hourly rate for hours worked in excess of 40 per week. Assume the Social Security tax rate is 6 percent on the first $110,000 of wages and the Medicare tax rate is 1.5 percent on all earnings. Federal income tax withheld for Kala and Carl was $250 and $220 respectively. The following information is for the first week in January 2010: Employee Kala Carl Hours Worked 52 47 Wage Rate per Hour $20 $25 Required a. Calculate the gross pay for each employee for the week. b. Calculate the net pay for each employee for the week. c. Prepare the general journal entry to record payment of the wages.

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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