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Compute Welch?s gross pay, payroll deductions, and net pay for the full year 2014.

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Question

P11-26A Computing and journalizing payroll amounts;Louis Welch is general manager of United Salons. During 2014, Welch worked for;the company all year at a $10,200 monthly salary. He also earned a year-end bonus;equal to 10% of his annual salary.;Welch?s federal income tax withheld during 2014 was $850 per month, plus;$924 on his bonus check. State income tax withheld came to $70 per month, plus;$40 on the bonus. FICA tax was withheld on the annual earnings. Welch authorized;the following payroll deductions: Charity Fund contribution of 1% of total;earnings and life insurance of $5 per month.;United incurred payroll tax expense on Welch for FICA tax. The company;also paid state unemployment tax and federal unemployment tax. In addition;United provides Welch with health insurance at a cost of $150 per month. During;2014, United paid $4,000 into Welch?s retirement plan.;Learning Objectives 1, 2;1 d. Rent Revenue $2,875;3. Total $180,575;Learning Objective 2;1. Net Pay $114,654;Requirements;1. Compute Welch?s gross pay, payroll deductions, and net pay for the full year;2014. Round all amounts to the nearest dollar.;2. Compute United?s total 2014 payroll expense for Welch.;3. Make the journal entry to record United?s expense for Welch?s total earnings for;the year, his payroll deductions, and net pay. Debit Salaries Expense and Bonus;Expense as appropriate. Credit liability accounts for the payroll deductions and;Cash for net pay. An explanation is not required.

 

Paper#23630 | Written in 18-Jul-2015

Price : $27
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