Question

# Laura Strand’s regular hourly wage rate is \$20, and she receives an hourly rate of \$30...

Laura Strand’s regular hourly wage rate is \$20, and she receives an hourly rate of \$30 for work in excess of 40 hours. During a January pay period, Laura works 45 hours. Laura’s federal income tax withholding is \$94.00, and she has no voluntary deductions. Assume that the FICA tax rate is 7.65%.

Prepare the employer’s journal entries to record (a) Laura’s pay for the period and (b) the payment of Laura’s wages. Use January 15 for the end of the pay period and the payment date. (Round answers to 2 decimal places, e.g. 15.25. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Date

Account Titles and Explanation

Debit

Credit

(a)

Jan. 15

enter an account title to record Betsy's pay for the period on January 15 enter a debit amount enter a credit amount
enter an account title to record Betsy's pay for the period on January 15 enter a debit amount enter a credit amount
enter an account title to record Betsy's pay for the period on January 15 enter a debit amount enter a credit amount
enter an account title to record Betsy's pay for the period on January 15 enter a debit amount enter a credit amount

(b)

Jan. 15

enter an account title to record the payment of Betsy's wages on January 15 enter a debit amount enter a credit amount
enter an account title to record the payment of Betsy's wages on January 15 enter a debit amount enter a credit amount

 Date Account Titles and Explanation Debit Credit a January 15 Salaries and wages expense 950.00 =(40*20)+(5*30) Federal income tax withholding payable 94.00 FICA payable 72.68 =950*7.65% Salaries and wages payable 783.32 b January 15 Salaries and wages payable 783.32 Cash 783.32

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