Zolnick Enterprises has two hourly employees-Kelly and Jon. Both employees earn overtime at the rate of 1.5 times the hourly rate forhours worked in excess of 40 per week. Assume the Social Security tax rate is 6 percent on the first $110,000 of wages, and theMedicare tax rate is 1.5 percent on all earnings. Federal income tax withheld for Kelly and Jon was $245 and $228, respectively, forthe first week of January. The following information is for the first week in January Year 1.Wage Rate perHourEmployeeKellyHours Worked$ 22$ 2750Jon45Requireda. 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.Complete this question by entering your answers in the tabs below.Reg A and BReq CCalculate the gross pay for each employee for the week.Calculate the net pay for each employee for the week.(Round intermediate calculations and your final answers to 2 decimal places.)KellyJonla.Gross payb.Net pay< Req A and BReq C>

Bonus rate for Kelly = $22 x 1.5 times = $33 Bonus rate for Jon = $27 x 1.5 times = $40.5Gross pay for Kelly = 40 hours x $22 + 10 hours x $33 = $880 + $330 = $1,210 Gross pay for Jon = 40 hours x $27 + 5 hours x $40.5 = $1,080 + $202.5 = $1,282.5Calculation of net pay : Particulars Kelly Jon Gross Pay $1,210 $1,282.5 Less : Social security tax @ 6% ( $72.6 ) ( $76.95 ) Less : Medicare tax @ 1.5% ( $18.15 ) ( $19.24 ) Less : Federal income tax withheld ( $245 ) ( $228 ) Net Pay $874.25 $958.31 Journal Entries Particulars Debit Credit Payroll Payable A/c ( $874.25 + $958.31 ) Dr $1,832.56 To Cash A/c $1,832.56 ( To record payment of wages )

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Zolnick Enterprises has two hourly employees-Kelly and Jon. Both employees earn overtime at the rate of 1.5 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 Kelly and Jon was $245 and $228, respectively, for the first week of January. The following information is for the first week in January Year 1. Wage Rate per Hour Employee Kelly Hours Worked 50 45 $ 22 $ 27 Jon 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.

Zolnick Enterprises has two hourly employees-Kelly and Jon. Both employees earn overtime at the rate of 1.5 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 Kelly and Jon was $245 and $228, respectively, for the first week of January. The following information is for the first week in January Year 1. Wage Rate per Hour Employee Kelly Hours Worked 50 45 $ 22 $ 27 Jon 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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