Accounting Help

hho9e_e10_13_eip_stud.xlsx

E10-13

Accounting, 9e
E10-13	Computing and recording gross and net pay
LO 3,4 [10-15 minutes]
		Students please fill-in areas that are shaded
Student Name
Course Name
Student ID:
Date:
Henry Striker manages a Frosty Boy drive-in. His straight-time pay is $10 per hour,
with time-and-a-half for hours in excess of 40 per week. Striker’s payroll deductions
include withheld income tax of 8%, FICA tax of 7.65%, and a weekly deduction
of $5 for a charitable contribution to the United Fund. Striker worked 52
hours during the week.
Requirements
1.	Compute Striker’s gross pay and net pay for the week. Carry amounts to the
	nearest cent.
2.	Journalize Frosty Boy’s wage expense accrual for Striker’s work. An explanation
	is not required.
3.	Journalize the subsequent payment of wages to Striker.
Test Your Knowledge
E10-13
Req. 1
	Straight-time earnings for 40 hours (40 X $10)		$ 400.00
	Overtime pay for the next 12 hours:
	Deductions:
	Withheld income tax 8%		- 0
	FICA tax 7.65%		- 0
	United Fund contribution		5.00
	Total deductions			5.00
	Net pay
Req. 2
Journal
DATE	ACCOUNTS AND EXPLANATIONS		DEBIT	CREDIT
Req. 3
Journal
DATE	ACCOUNTS AND EXPLANATIONS		DEBIT	CREDIT

Good student getting tired April 23