P11-26A (similar to) Lee Werner is general manager of Moonwalk Salons. During 2018, Werner worked for...

   

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P11-26A (similar to) Lee Werner is general manager of Moonwalk Salons. During 2018, Werner worked for the company all year at a $14,700 monthly salary. He also earned a year-end bonus equal to 10% of his annual salary. Werner's federal income tax withheld during 2018 was $1,470 per month, plus $2,646 on his bonus check. State income tax withheld came to $160 per month, plus $80 on the bonus. FICA tax was withheld on the annual earnings. Werner authorized the following payroll deductions: Charity Fund contribution of 4% of total earnings and life insurance of $50 per month. Requirement 1. Compute Werner's gross pay, payroll deductions, and net pay for the full year 2018. Round all amounts to the nearest dollar. Begin by computing Werner's gross pay for the year. (Round all amounts to the nearest dollar.) Gross pay: Gross Pay Choose from any list or enter any number in the input fields and then click Check Answer. 5 Moonwalk incurred payroll tax expense on Werner 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. parts remaining Question Help Clear All Check Answer ☀ ? i More Info For all payroll calculations, use the following tax rates and round amounts to the nearest cent: - Employee: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. Employer: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% on all earnings; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. Print Done X i Requirements 1. Compute Werner's gross pay, payroll deductions, and net pay for the full year 2018. Round all amounts to the nearest dollar. - X 2. Compute Moonwalk's total 2018 payroll tax expense for Werner. 3. Make the journal entry to record Moonwalk's expense for Werner'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 Werner's total earnings. 5. Make the journal entry for the payment of the payroll withholdings and taxes. Print Done P11-26A (similar to) Lee Werner is general manager of Moonwalk Salons. During 2018, Werner worked for the company all year at a $14,700 monthly salary. He also earned a year-end bonus equal to 10% of his annual salary. Werner's federal income tax withheld during 2018 was $1,470 per month, plus $2,646 on his bonus check. State income tax withheld came to $160 per month, plus $80 on the bonus. FICA tax was withheld on the annual earnings. Werner authorized the following payroll deductions: Charity Fund contribution of 4% of total earnings and life insurance of $50 per month. Requirement 1. Compute Werner's gross pay, payroll deductions, and net pay for the full year 2018. Round all amounts to the nearest dollar. Begin by computing Werner's gross pay for the year. (Round all amounts to the nearest dollar.) Gross pay: Gross Pay Choose from any list or enter any number in the input fields and then click Check Answer. 5 Moonwalk incurred payroll tax expense on Werner 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. parts remaining Question Help Clear All Check Answer ☀ ? i More Info For all payroll calculations, use the following tax rates and round amounts to the nearest cent: - Employee: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. Employer: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% on all earnings; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. Print Done X i Requirements 1. Compute Werner's gross pay, payroll deductions, and net pay for the full year 2018. Round all amounts to the nearest dollar. - X 2. Compute Moonwalk's total 2018 payroll tax expense for Werner. 3. Make the journal entry to record Moonwalk's expense for Werner'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 Werner's total earnings. 5. Make the journal entry for the payment of the payroll withholdings and taxes. Print Done