Donald Chin works for Northwest Supplies. His rate of pay is $12.00 per hour, and he is paid 1½ times the regular rate for all hours worked in excess of 40 per week. During the last week of January of the current year, he worked 48 hours. Chin is married and claims three withholding allowances on his W-4 form. His weekly wages are subject to the following deductions:Employee federal income tax (Tax Tables: Refer to Figure 8-4 in the text.)Social Security tax at 6.2%Medicare tax at 1.45%Health insurance premium, $80Credit union, $135United Way contribution, $10Required:1. Compute Chin's regular pay, overtime pay, gross pay, and net pay.If required, round your intermediate and final answers to the nearest cent.Regular pay$Overtime pay$Gross pay$Net pay$ Journalize the payment of his wages for the week ended January 31, crediting Cash for the net amount.Page: 1 DATEACCOUNT TITLEDOC. NO.POST. REF.DEBITCREDIT

Regular pay refers to the base salary or hourly wage that an employee earns for working their…

Answered: Donald Chin works for Northwest…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter7: Employee Earnings And Deductions

Section: Chapter Questions

Problem 1PB

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Question

Donald Chin works for Northwest Supplies. His rate of pay is $12.00 per hour, and he is paid 1½ times the regular rate for all hours worked in excess of 40 per week. During the last week of January of the current year, he worked 48 hours. Chin is married and claims three withholding allowances on his W-4 form. His weekly wages are subject to the following deductions:

Employee federal income tax (Tax Tables: Refer to Figure 8-4 in the text.)
Social Security tax at 6.2%
Medicare tax at 1.45%
Health insurance premium, $80
Credit union, $135
United Way contribution, $10

Required:

1. Compute Chin's regular pay, overtime pay, gross pay, and net pay.

If required, round your intermediate and final answers to the nearest cent.

Regular pay	$
Overtime pay	$
Gross pay	$
Net pay	$

Journalize the payment of his wages for the week ended January 31, crediting Cash for the net amount.

Page: 1

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT

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