Parry Paint LLC started operations on January 1, 2019. It had the following payroll transactions during theyear.Jan 15 - Paid an employee B. Vaughn gross pay of $2,000 for January 1-15 salary, calculated asfollows:DeductionsFICA MedicareGross PayNet PayIncome taxes15%FICA SocialTotaldeductionsSecurity6.2%1.45%$2,000The company matches FICA deductions.Required:a. Calculate B. Vaughn's net pay and journalize the entries to record her payroll.b. Prepare journal entries to record the above transactions. Show necessary calculations.

Income tax payable=Gross pay×rate=$2,000×15%=$300

Parry Paint LLC started operations on January 1, 2019. It had the following payroll transactions during the year. Jan 15 - Paid an employee B. Vaughn gross pay of $2,000 for January 1-15 salary, calculated as follows: Deductions FICA Medicare 1.45% Gross Pay Income taxes FICA Social Total deductions Net Pay 15% Security 6.2% $2,000 The company matches FICA deductions. Required: a Calculate B. Vaughn's net pay and journalize the entries to record her payroll. b. Prepare journal entries to record the above transactions. Show necessary calculations.

Parry Paint LLC started operations on January 1, 2019. It had the following payroll transactions during the year. Jan 15 - Paid an employee B. Vaughn gross pay of $2,000 for January 1-15 salary, calculated as follows: Deductions FICA Medicare 1.45% Gross Pay Income taxes FICA Social Total deductions Net Pay 15% Security 6.2% $2,000 The company matches FICA deductions. Required: a Calculate B. Vaughn's net pay and journalize the entries to record her payroll. b. Prepare journal entries to record the above transactions. Show necessary calculations.

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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