Parry Paint LLC started operations on January 1, 2019. It had the following payroll transactions during the year.

Jan 15 – Paid an employee B. Vaughn $1,560 cash for January 1-15 salary, calculated as follows:

Gross Pay	Deductions
	Income taxes 15%	FICA Social Security 6.2%	FICA Medicare 1.45%	Total deductions	Net Pay
$2,000

The company matches FICA deductions.

Required:

1. Calculate B. Vaughn’s net pay and journalize the entries to record her payroll.
2. Prepare journal entries to record the above transactions. Show necessary calculations.

Answer rating: 100% (QA)

a Deductions Gross Pay Net Pay Income taxes 15 FICA Social Se... View the full answer