Larry Whitney is general manager of Moonwalk Salons. During 2024, Whitney worked for the company all...

 

  

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Larry Whitney is general manager of Moonwalk Salons. During 2024, Whitney worked for the company all year at a $12,400 monthly salary. He also earned a year-end bonus equal to 20% of his annual salary. Whitney's federal income tax withheld during 2024 was $3,968 per month, plus $9,523 on his bonus check. State income tax withheld came to $80 per month, plus $60 on the bonus. FICA tax was withheld on the annual earnings. Whitney authorized the following payroll deductions: Charity Fund contribution of 4% of total earnings and life insurance of $40 per month. Requirement 1. Compute Whitney's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar. Begin by computing Whitney's gross pay for the year. (Round all amounts to the nearest dollar.) Gross pay: Salary Bonus Gross Pay 148,800 7440 Moonwalk incurred payroll tax expense on Whitney for FICA tax. The company also paid state unemployment tax and federal unemployment tax. i (Click the icon to view payroll tax rate information.) Read the requirements. 156240 More info For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. OASDI: 6.2% on first $132,900 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. Print Done L Requirements 1. Compute Whitney's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar. 2. Compute Moonwalk's total 2024 payroll tax expense for Whitney. 3. Make the journal entry to record Moonwalk's expense for Whitney's total earnings for the year, his payroll deductions, and net pay. Debit Salaries Expense and Bonus Expense as appropriate. Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required. 4. Make the journal entry to record the accrual of Moonwalk's payroll tax expense for Whitney's total earnings. 5. Make the journal entry for the payment of the payroll withholdings and taxes. - X Larry Whitney is general manager of Moonwalk Salons. During 2024, Whitney worked for the company all year at a $12,400 monthly salary. He also earned a year-end bonus equal to 20% of his annual salary. Whitney's federal income tax withheld during 2024 was $3,968 per month, plus $9,523 on his bonus check. State income tax withheld came to $80 per month, plus $60 on the bonus. FICA tax was withheld on the annual earnings. Whitney authorized the following payroll deductions: Charity Fund contribution of 4% of total earnings and life insurance of $40 per month. Requirement 1. Compute Whitney's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar. Begin by computing Whitney's gross pay for the year. (Round all amounts to the nearest dollar.) Gross pay: Salary Bonus Gross Pay 148,800 7440 Moonwalk incurred payroll tax expense on Whitney for FICA tax. The company also paid state unemployment tax and federal unemployment tax. i (Click the icon to view payroll tax rate information.) Read the requirements. 156240 More info For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. OASDI: 6.2% on first $132,900 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. Print Done L Requirements 1. Compute Whitney's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar. 2. Compute Moonwalk's total 2024 payroll tax expense for Whitney. 3. Make the journal entry to record Moonwalk's expense for Whitney's total earnings for the year, his payroll deductions, and net pay. Debit Salaries Expense and Bonus Expense as appropriate. Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required. 4. Make the journal entry to record the accrual of Moonwalk's payroll tax expense for Whitney's total earnings. 5. Make the journal entry for the payment of the payroll withholdings and taxes. - X

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ANSWER 1 Compute Whitneys gross pay payroll deductions and net pay for the full year 2024 Round all ... View the full answer