Question

Kimberly Strand’s regular hourly wage rate is $30, and she receives an hourly rate of $45 for work in excess of 40 hours. During a January pay period, Kimberly works 48 hours. Kimberly’s federal income tax withholding is $98.00, and she has no voluntary deductions. Assume that the FICA tax rate is 7.65%.

Prepare the employer’s journal entries to record (a) Kimberly’s pay for the period and (b) the payment of Kimberly’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

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List of Accounts

Answer 1

Date	Account Titles and Explanation	Debit ($)	Credit ($)
15-Jan	Salaries & Wages Expenses [(40 x $30.00) + (8 x $45.00)]	1,560.00
	To FICA Taxes Payable [$1,560 x 7.65%]		119.34
	To Federal Income Taxes Payable [$98.00]		98.00
	To Salaries & Wages Payable [$1,560 - $119.34 - $98.00]		1,342.66
	[Entry to record Betsy's pay for the period on January 15]
15-Jan	Salaries & Wages Payable	1,342.66
	To Cash		1,342.66
	[Entry to record the payment of Betsy's wages on January 15]