Ian McCarthy works for Willow Tree Homes. His rate of pay is $16.00 per hour and he is paid one and one-half times the regular rate for all hours worked in excess of 40 per week. During the last week of March of the current year he worked 45 hours. Ian is single and claims 2 withholding allowances on his W-4 form. His weekly wages are subject to the following deductions: a. Employee (Federal) income tax (use withholding table provided). b. Social Security tax at 6.2%. c. Medicare tax at 1.45%. d. Health insurance premium, $60. e. Credit union deposit, $140. f. United Way contribution, $15. Required: 1. Compute McCarthy's regular, overtime, gross, and net pay. If required, round your answers to the nearest cent. Regular pay $fill in the blank 818b23072fd4feb_1 Overtime pay $fill in the blank 818b23072fd4feb_2 Gross pay $fill in the blank 818b23072fd4feb_3 Net pay $fill in the blank 818b23072fd4feb_4 2. Journalize the payment of his wages for the week ended March 26, crediting Cash for the net amount. When required, round your answers to the nearest cent. If an amount box does not require an entry, leave it blank. Page: 1 DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 Mar. 26 fill in the blank 4fc8110b3053fea_2 fill in the blank 4fc8110b3053fea_3 1 2 fill in the blank 4fc8110b3053fea_5 fill in the blank 4fc8110b3053fea_6 2 3 fill in the blank 4fc8110b3053fea_8 fill in the blank 4fc8110b3053fea_9 3 4 fill in the blank 4fc8110b3053fea_11 fill in the blank 4fc8110b3053fea_12 4 5 fill in the blank 4fc8110b3053fea_14 fill in the blank 4fc8110b3053fea_15 5 6 fill in the blank 4fc8110b3053fea_17 fill in the blank 4fc8110b3053fea_18 6 7 fill in the blank 4fc8110b3053fea_20 fill in the blank 4fc8110b3053fea_21 7 8 fill in the blank 4fc8110b3053fea_23 fill in the blank 4fc8110b3053fea_24 8

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter7: Employee Earnings And Deductions

Section: Chapter Questions

Problem 1PA

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Ian McCarthy works for Willow Tree Homes. His rate of pay is $16.00 per hour and he is paid one and one-half times the regular rate for all hours worked in excess of 40 per week. During the last week of March of the current year he worked 45 hours. Ian is single and claims 2 withholding allowances on his W-4 form. His weekly wages are subject to the following deductions:

a.	Employee (Federal) income tax (use withholding table provided).
b.	Social Security tax at 6.2%.
c.	Medicare tax at 1.45%.
d.	Health insurance premium, $60.
e.	Credit union deposit, $140.
f.	United Way contribution, $15.

Required:

1. Compute McCarthy's regular, overtime, gross, and net pay. If required, round your answers to the nearest cent.

Regular pay	$fill in the blank 818b23072fd4feb_1
Overtime pay	$fill in the blank 818b23072fd4feb_2
Gross pay	$fill in the blank 818b23072fd4feb_3
Net pay	$fill in the blank 818b23072fd4feb_4

2. Journalize the payment of his wages for the week ended March 26, crediting Cash for the net amount. When required, round your answers to the nearest cent. If an amount box does not require an entry, leave it blank.

Page: 1

	DATE	DEBIT	CREDIT
1	Mar. 26	fill in the blank 4fc8110b3053fea_2	fill in the blank 4fc8110b3053fea_3	1
2		fill in the blank 4fc8110b3053fea_5	fill in the blank 4fc8110b3053fea_6	2
3		fill in the blank 4fc8110b3053fea_8	fill in the blank 4fc8110b3053fea_9	3
4		fill in the blank 4fc8110b3053fea_11	fill in the blank 4fc8110b3053fea_12	4
5		fill in the blank 4fc8110b3053fea_14	fill in the blank 4fc8110b3053fea_15	5
6		fill in the blank 4fc8110b3053fea_17	fill in the blank 4fc8110b3053fea_18	6
7		fill in the blank 4fc8110b3053fea_20	fill in the blank 4fc8110b3053fea_21	7
8		fill in the blank 4fc8110b3053fea_23	fill in the blank 4fc8110b3053fea_24	8

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