Herman Stanton manages a Dairy King drive-in. His straight-time pay is $9 per ho

Question

Herman Stanton manages a Dairy King drive-in. His straight-time pay is $9 per hour, with time-and-a-half for hours in excess of 40 per week Stanton's payroll deductions include withheld income tax of 20%, FICA tax, and a weekly deduction of $5 for a charitable contribution to United Way. Stanton worked 54 hours during the week. 1 (Click the icon to view payroll tax rate information) Requirements 1. Compute Stanton's gross pay and net pay for the week Assume earnings to date are $9,000 2. Journalize Dairy King's wages expense accrual for Stanton's work. An explanation is not required 3. Journalize the subsequent payment of wages to Stanton. Requirement 1.Compute Stanton's gross pay and net pay for the week Assume earnings to date are $9,000. (Round all amounts to the nearest cent.) Begin by computing Stanton's gross pay for the week. Straight-time pay for 40 hours Overtime pay for 14 hours Gross Pay Choose from any list or enter any number in the input fields and then click Check Answer Clear All Check Answer Advertis

Explanation / Answer

1. Gross earnings: Straight time pay for 40 hours: USD 360 (9*40)

Overtime: USD 189 (9*1.5*16)

Gross pay: USD 549

Net pay: 549- (20% *549)-5=434.2

2. Dr. Wages expense account

   Cr. Wages payable account

3. Dr. Wages payable account

    Cr. Bank a/c

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