Bonny Strand's regular hourly wage rate is $10, and she receives an hourly rate of $15 for work in excess of 40 hours. During a January
pay period, Bonny works 47 hours. Bonny's federal income tax withholding is $117.00, and she has no voluntary deductions. Assume
that the FICA tax rate is 7.65%.
Prepare a tabular summary for Bonny's employer to record (a) Bonny's pay for the period and (b) the payment of Bonny's wages. Use
January 15 for the end of the pay period and the payment date. Assume that the FICA tax rate is 7.65%. Include margin explanations
for the changes in revenues and expenses. (Round answers to 2 decimal places, e.g. 15.25. If a transaction causes a decrease in Assets,
Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or
Equity item that was reduced.)
Assets
Cash
Liabilities
Salaries & Wages Pay.
+
Fed. Inc. Taxes Pay.
FICA Taxes Pay.
505
$
$
$
$
