Hubert Sollenberger manages a Dairy House drive-in. His straight-time pay is $8 per hour, with time-and-a-half for hours in excess of 40 per week. Sollenberger’s payroll deductions include withheld income tax of 20%, FICA tax, and a weekly deduction of $8 for a charitable contribution to United Way. Sollenberger worked 56 hours during the week.
Requirements
1. Compute Sollenberger’s gross pay and net pay for the week. Assume earnings to date are $11,000.
2. Journalize Dairy Houses wages expense accrual for Sollenberger’s work. An explanation is not required.
3. Journalize the subsequent payment of wages to Sollenberger.