Question

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.

MARRIED Persons ― WEEKLY Payroll Period
(For Wages Paid through December 2017)
If the wages are ―		And the number of withholding allowances claimed is ―
At least	But less than	0	1	2	3	4	5	6	7	8	9	10
		The amount of income tax to be withheld is ―
500	510	34	27	19	11	4	0	0	0	0	0	0
510	520	35	28	20	12	5	0	0	0	0	0	0
520	530	37	29	21	13	6	0	0	0	0	0	0
530	540	38	30	22	14	7	0	0	0	0	0	0
540	550	40	31	23	15	8	0	0	0	0	0	0
550	560	41	32	24	16	9	1	0	0	0	0	0
560	570	43	33	25	17	10	2	0	0	0	0	0
570	580	44	34	26	18	11	3	0	0	0	0	0
580	590	46	35	27	19	12	4	0	0	0	0	0
590	600	47	36	28	20	13	5	0	0	0	0	0
600	610	49	38	29	21	14	6	0	0	0	0	0
610	620	50	39	30	22	15	7	0	0	0	0	0
620	630	52	41	31	23	16	8	1	0	0	0	0
630	640	53	42	32	24	17	9	2	0	0	0	0
640	650	55	44	33	25	18	10	3	0	0	0	0
650	660	56	45	34	26	19	11	4	0	0	0	0
660	670	58	47	35	27	20	12	5	0	0	0	0
670	680	59	48	37	28	21	13	6	0	0	0	0
680	690	61	50	38	29	22	14	7	0	0	0	0
690	700	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
(2) FICA taxes. (Assume a 7.65% rate on maximum of $127,200.)		$enter a dollar amount rounded to 2 decimal places
(3) Federal income taxes withheld.		$enter a dollar amount
(4) State income taxes withheld. (Assume a 2.0% rate.)		$enter a dollar amount rounded to 2 decimal places
(5) Net pay.		$enter a dollar amount rounded to 2 decimal places

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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

Answer 1

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)