{"id":180216,"date":"2025-01-04T06:39:17","date_gmt":"2025-01-04T06:39:17","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=180216"},"modified":"2025-01-04T06:39:19","modified_gmt":"2025-01-04T06:39:19","slug":"helen-strands-regular-hourly-wage-rate-is-14-and-she-receives-an-hourly-rate-of-21-for-work-in-excess-of-40-hours","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/01\/04\/helen-strands-regular-hourly-wage-rate-is-14-and-she-receives-an-hourly-rate-of-21-for-work-in-excess-of-40-hours\/","title":{"rendered":"Helen Strand&#8217;s regular hourly wage rate is $14, and she receives an hourly rate of $21 for work in excess of 40 hours"},"content":{"rendered":"\n<p>Helen Strand&#8217;s regular hourly wage rate is $14, and she receives an hourly rate of $21 for work in excess of 40 hours. During a January pay period Helen works 47 hours. Helen&#8217;s federal income tax withholding is $86.00, and she has no voluntary deductions. Assume that the FICA tax rate is 7.65%. Prepare the employer&#8217;s journal entries to record (al Heler&#8217;s pay for the period and (b) the payment of Helen&#8217;s wages. Use January 15 for the end of the pay period and the payment date. (Round answer to 2 decimal places. e.8. 15.25. Credit account titles are automatically indented when amount is entered. Do not indent manually) No. Date Account Titles and Explanation Debit Credit Jan 15 Jan 15<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/learnexams.com\/blog\/wp-content\/uploads\/2025\/01\/image-36.png\" alt=\"\" class=\"wp-image-180217\"\/><\/figure>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-ast-global-color-6-color\"><strong>The Correct Answer and Explanation is :<\/strong><\/mark><\/p>\n\n\n\n<p>To prepare the employer&#8217;s journal entries for Helen Strand&#8217;s pay for the period, follow these steps:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 1: Calculate Helen&#8217;s Gross Pay<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Regular pay<\/strong>: ( 40 \\, \\text{hours} \\times 14.00 \\, \\text{\\$\/hour} = 560.00 )<\/li>\n\n\n\n<li><strong>Overtime pay<\/strong>: ( 7 \\, \\text{hours} \\times 21.00 \\, \\text{\\$\/hour} = 147.00 )<\/li>\n\n\n\n<li><strong>Total Gross Pay<\/strong>: ( 560.00 + 147.00 = 707.00 )<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Step 2: Calculate Deductions<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>FICA Tax<\/strong>: ( 707.00 \\times 0.0765 = 54.12 )<\/li>\n\n\n\n<li><strong>Federal Income Tax Withholding<\/strong>: ( 86.00 )<\/li>\n\n\n\n<li><strong>Total Deductions<\/strong>: ( 54.12 + 86.00 = 140.12 )<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Step 3: Calculate Net Pay<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Net Pay<\/strong>: ( 707.00 &#8211; 140.12 = 566.88 )<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Step 4: Journal Entries<\/h3>\n\n\n\n<h4 class=\"wp-block-heading\">(a) To record Helen&#8217;s pay:<\/h4>\n\n\n\n<p><strong>Date<\/strong>: January 15<\/p>\n\n\n\n<pre class=\"wp-block-code\"><code>Account Titles and Explanation                  Debit       Credit\nSalaries and Wages Expense                     707.00\n    FICA Taxes Payable                                      54.12\n    Federal Income Taxes Payable                           86.00\n    Salaries and Wages Payable                             566.88<\/code><\/pre>\n\n\n\n<h4 class=\"wp-block-heading\">(b) To record the payment of Helen&#8217;s wages:<\/h4>\n\n\n\n<p><strong>Date<\/strong>: January 15<\/p>\n\n\n\n<pre class=\"wp-block-code\"><code>Account Titles and Explanation                  Debit       Credit\nSalaries and Wages Payable                     566.88\n    Cash                                                   566.88<\/code><\/pre>\n\n\n\n<h3 class=\"wp-block-heading\">Explanation<\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Gross Pay and Deductions<\/strong>: Helen&#8217;s gross pay is based on her regular hours and overtime hours. Deductions include FICA taxes (Social Security and Medicare) and federal income taxes.<\/li>\n\n\n\n<li><strong>Journal Entry (a)<\/strong>: The employer records the total payroll expense as a debit to &#8220;Salaries and Wages Expense.&#8221; The deductions are credited to &#8220;FICA Taxes Payable&#8221; and &#8220;Federal Income Taxes Payable,&#8221; and the remaining net pay is credited to &#8220;Salaries and Wages Payable.&#8221;<\/li>\n\n\n\n<li><strong>Journal Entry (b)<\/strong>: When wages are paid, &#8220;Salaries and Wages Payable&#8221; is debited, and cash is credited for the net amount.<\/li>\n\n\n\n<li><strong>Accuracy in Rounding<\/strong>: Amounts are rounded to two decimal places to ensure compliance with accounting standards.<\/li>\n<\/ol>\n\n\n\n<p>This process ensures that the employer&#8217;s payroll accounting is accurate, transparent, and in line with tax obligations.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Helen Strand&#8217;s regular hourly wage rate is $14, and she receives an hourly rate of $21 for work in excess of 40 hours. During a January pay period Helen works 47 hours. Helen&#8217;s federal income tax withholding is $86.00, and she has no voluntary deductions. Assume that the FICA tax rate is 7.65%. Prepare the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-180216","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/180216","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=180216"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/180216\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=180216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=180216"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=180216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}