Henry Striker manages a Frosty Boy drive-in. His straight-time pay is $ 10 per hour, with time-and-a-half for hours in excess of 40 per week. Striker’s payroll deductions include withheld income tax of 8%, FICA tax, and a weekly deduction of $ 5 for a charitable contribution to United Way. Striker worked 52 hours during the week.

Requirements

1. Compute Striker’s gross pay and net pay for the week. Assume earnings to date are $ 10,000.

2. Journalize Frosty Boy’s wages expense accrual for Striker’s work. An explanation is not required.

3. Journalize the subsequent payment of wages to Striker.