GROSS PAY, DEDUCTIONS, AND NET PAY Elyse Lin works for Columbia Industries. Her rate of pay is $14.50 per hour, and she 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, she worked 46 hours. Lin is married and claims two withholding allowances on her W-4 form. Her weekly wages are subject to the following deductions: (a) Employee federal income tax (use Figure 8-4 on pages 288 and 289) (b) Social Security tax at 6.2% (c) Medicare tax at 1.45% (d) Health insurance premium, $92 (e) Credit union, $110 (f) United Way contribution, $5 REQUIRED 1. Compute Lin’s regular pay, overtime pay, gross pay, and net pay. 2. Journalize the payment of her wages for the week ended January 31, crediting Cash for the net amount.

BuyFind

College Accounting, Chapters 1-27 ...

22nd Edition
James A. Heintz + 1 other
Publisher: Cengage Learning
ISBN: 9781305666160
BuyFind

College Accounting, Chapters 1-27 ...

22nd Edition
James A. Heintz + 1 other
Publisher: Cengage Learning
ISBN: 9781305666160

Solutions

Chapter 8, Problem 8SPB
Textbook Problem

GROSS PAY, DEDUCTIONS, AND NET PAY Elyse Lin works for Columbia Industries. Her rate of pay is $14.50 per hour, and she 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, she worked 46 hours. Lin is married and claims two withholding allowances on her W-4 form. Her weekly wages are subject to the following deductions:

(a) Employee federal income tax (use Figure 8-4 on pages 288 and 289)

(b) Social Security tax at 6.2%

(c) Medicare tax at 1.45%

(d) Health insurance premium, $92

(e) Credit union, $110

(f) United Way contribution, $5

REQUIRED

1. Compute Lin’s regular pay, overtime pay, gross pay, and net pay.

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

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Chapter 8 Solutions

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 8 - LO2 Qian Wang is paid a regular rate of 14 per...Ch. 8 - The column totals from the payroll register of...Ch. 8 - Why is it important for payroll accounting...Ch. 8 - Name three major categories of deductions from an...Ch. 8 - Identify the four factors that determine the...Ch. 8 - In general, an employee is entitled to withholding...Ch. 8 - Identify the three payroll records usually needed...Ch. 8 - Describe the information contained in the payroll...Ch. 8 - Why is it important to total and verify the totals...Ch. 8 - Distinguish between the payroll register and the...Ch. 8 - Explain what an employer does with the amounts...Ch. 8 - Explain why payroll processing centers and...Ch. 8 - COMPUTING WEEKLY GROSS PAY Ryan Lawrence's regular...Ch. 8 - COMPUTING OVERTI ME RATE OF PAY AND GROSS WEEKLY...Ch. 8 - COMPUTING FEDERAL INCOME TAX Using the table in...Ch. 8 - CALCUL ATING SOCIAL SECURITY AND MEDICARE TAXES...Ch. 8 - COMPUTING NET PAY Mary Sue Guild works for a...Ch. 8 - JOURNALIZING PAYROLL TRANSACTIONS On December 31,...Ch. 8 - PAYROLL JOURNAL ENTRY Journalize the following...Ch. 8 - GROSS PAY, DEDUCTIONS, AND NET PAY Donald Chin...Ch. 8 - PAYROLL REGISTER AND PAYROLL JOURNAL ENTRY Mary...Ch. 8 - EMPLOYEE EARNINGS RECORD Marys Luxury Travel in...Ch. 8 - COMPUTING WEEKLY GROSS PAY Manuel Sotos regular...Ch. 8 - COMPUTING OVERTI ME RATE OF PAY AND GROSS WEEKLY...Ch. 8 - COMPUTING FEDERAL INCOME TAX Using the table in...Ch. 8 - CALCULATING SOCIAL SECURITY AND MEDICARE TAXES...Ch. 8 - COMPUTING NET PAY Tom Hallinan works for a company...Ch. 8 - JOURNALIZING PAYROLL TRANSACTIONS On November 30,...Ch. 8 - PAYROLL JOURN AL ENTRY Journalize the following...Ch. 8 - GROSS PAY, DEDUCTIONS, AND NET PAY Elyse Lin works...Ch. 8 - PAYROLL REGISTER AND PAYROLL JOURNAL ENTRY Karen...Ch. 8 - EMPLOYEE EARNINGS RECORD Karens Cupcakes in...Ch. 8 - MANAGING YOUR WRITING The federal minimum wage...Ch. 8 - ETHICS CASE Maura Lowe is a payroll accountant for...Ch. 8 - Abigail Trenkamp owns and operates the Trenkamp...Ch. 8 - Irina Company pays its employees weekly. The last...

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