Question

# Exercise 11-09 a-b Juli Garza's regular hourly wage rate is \$14.50, and she receives a wage...

Exercise 11-09 a-b

Juli Garza's regular hourly wage rate is \$14.50, and she receives a wage of 1½ times the regular hourly rate for work in excess of 40 hours. During a March weekly pay period, Juli worked 44 hours. Her gross earnings prior to the current week were \$7,300. Juli is married and claims three withholding allowances. Her only voluntary deduction is for group hospitalization insurance at \$20 per week.

 And the number of 0 1 2 3 4 5 6 If the wages are ― withholding allowances claimed is ― At least But less than MARRIED Persons ― WEEKLY Payroll Period (For Wages Paid through December 2017) 34 27 19 11 4 0 0 0 0 0 0 35 28 20 12 5 0 0 0 0 0 0 37 29 21 13 6 0 0 0 0 0 0 38 30 22 14 7 0 0 0 0 0 0 40 31 23 15 8 0 0 0 0 0 0 41 32 24 16 9 1 0 0 0 0 0 43 33 25 17 10 2 0 0 0 0 0 44 34 26 18 11 3 0 0 0 0 0 46 35 27 19 12 4 0 0 0 0 0 47 36 28 20 13 5 0 0 0 0 0 49 38 29 21 14 6 0 0 0 0 0 50 39 30 22 15 7 0 0 0 0 0 52 41 31 23 16 8 1 0 0 0 0 53 42 32 24 17 9 2 0 0 0 0 55 44 33 25 18 10 3 0 0 0 0 56 45 34 26 19 11 4 0 0 0 0 58 47 35 27 20 12 5 0 0 0 0 59 48 37 28 21 13 6 0 0 0 0 61 50 38 29 22 14 7 0 0 0 0 62 51 40 30 23 15 8 0 0 0 0
Compute the following amounts for Juli’s wages for the current week. (Round FICA taxes, State income taxes and Net pay answers to 2 decimal places, e.g. 52.55.)
(1) Gross earnings. \$enter a dollar amount \$enter a dollar amount rounded to 2 decimal places \$enter a dollar amount \$enter a dollar amount rounded to 2 decimal places \$enter a dollar amount rounded to 2 decimal places
Record Juli’s pay. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.75.)

Account Titles and Explanation

Debit

Credit

enter an account title enter a debit amount enter a credit amount
enter an account title enter a debit amount enter a credit amount
enter an account title enter a debit amount enter a credit amount
enter an account title enter a debit amount enter a credit amount
enter an account title enter a debit amount enter a credit amount
enter an account title enter a debit amount enter a credit amount

Ans:

1. gross earnings= Normal Wages+ overtime Wages

Normal Wages=40*14.50 =580

Overtime wages= (44-40)*1.5*14.50 = 4*1.5*14.50

=> 87

Gross Earnings= 580+87 = 667

2. FICA taxes= \$667*7.65%

=> \$51.02

3. Federal Income Tax Withheld= According to above table

=> 27

4. State income taxes= Gross Earnings* tax rate

=> \$667*2.0%

=> \$13.34

5. Net pay= Gross Earnings- FICA -federal Income Tax withheld-State income taxes

=> 667-51.02-27-13.34

=> \$ 575.64

Journal Entry

 Date Account title and explanation Debit(\$) Credit(\$) Wages 667 FICA 51.02 Federal income tax withheld 27 State income taxes 13.34 Wages payable 575.64 ( to record juli's pay)

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