70.2K

Verified Solution

Link Copied!

< Len Wilson is general manager of United Salons. During 2024, Wilson worked for the company all year at a $14,700 monthly salary. He also earned a year-end bonus equal to 5% of his annual salary. Wilson's federal income tax withheld during 2024 was $3,234 per month, plus $1,940 on his bonus check. State income tax withheld came to $110 per month, plus $40 on the bonus. FICA tax was withheld on the annual earnings. Wilson authorized the following payroll deductions: Charity Fund contribution of 2% of total earnings and life insurance of $10 per month. United incurred payroll tax expense on Wilson for FICA tax. The company also paid state unemployment tax and federal unemployment tax. (Click the icon to view payroll tax rate information.) Read the requirements. Requirement 1. Compute Wilson's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar. Begin by computing Wilson's gross pay for the year. (Round all amounts to the nearest dollar.) Gross pay Requirement 1. Compute Wilson's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar. Begin by computing Wilson's gross pay for the year. (Round all amour to the nearest dollar.) Gross pay Now compute Wilson's payroll deductions and net pay for the year. (Round all amounts to the nearest dollar.) Net pay: Withholding deductions: Net (take-home) pay Requirement 2. Compute United's total 2024 payroll tax expense for Wilson. (Round all amounts to the nearest dollar.) Employer Payroll Taxes: Requirement 3. Make the journal entry to record United's expense for Wilson'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. (Record debits first, then credits. Exclude explanations from journal entries.) Date Accounts Debit Credit Requirement 4. Make the journal entry to record the accrual of United's payroll tax expense for Wilson's total earnings. (Record debits first, then credits. Exclude explanations from journal entries.) Date Accounts Debit Credit Requirement 5. Make the journal entry for the payment of the payroll withholdings and taxes. (Record debits first, then credits. Exclude explanations from journal entries.) Date Accounts Debit Credit h

Answer & Explanation Solved by verified expert

See Answer