El Erin Berge\'s regular hourly wage rate is $18, and she receives a wage of 1%

Question

El Erin Berge's regular hourly wage rate is $18, and she receives a wage of 1% times the regular hourly rate for work in excess of 40 hours. During a March weekly pay period, Erin worked 42 hours. Her gross earnings prior to the current week were $56,000. Erin is married and claims three withholding allowances. Her only voluntary deduction is for group hospitalization insurance at $20 per week. Assume federal income tax withheld is $76 Instructions a. Compute the following amounts for Erin's wages for the current week 1. Gross earnings. 2. FICA taxes (based on a 7.65% rate). 3. State income taxes withheld (based on a 3% rate). 4. Net pay b. Record Erin's pay Journal Entry. Petricka decide to organize the Petson partnership. Tilson invests $15,000 cash, and Petricka receivable $9,000 less allowance for doubtfu contributes $12,000 cash and two assets from her sole proprietorship (accounts accounts $1,000, and land having a book value of $7,000). Prepare the entry to record the investment in the partnership, assuming the net realizable value of the receivables is $7.500 and th land has a fair value of $10,000. Mat & Daveson Co. reports net income of $1,000.Interest allowances are Matt $8,000 and Daveson $10,00, sala allowances are Matt $30,000 and Daveson $20,000, and the remainder is shared equally. Show the division of net E-4 The partners of LR Company have decided to liquidate their business. Noncash asses were sold for $125,000 The inco ratios of the partners Cisneros, Gunselman, and Forren are 3:2:3, respectively. Complete the following schedule of cash payments for LR Company Cisneros Gunselman, Cash + Assets -uablities+ Capital ?Capital Item Balances before liquidation 15,00090,00040,000 20,000 32,000 13,000 and allocation of gain 4 New balances 6 New belances Final balances

Explanation / Answer

Answer to question 1.

Subpart A1

Calculation of Gross earning

Normal wage =$(18*40)=$720.

Overtime wage,=$(2*1.5*18)=$54.

Total gross pay = $774.

Subpart A2.

FICA tax withholding

Gross income=$774

Pre tax deduction=$20

Calculation of FICA deduction=$(754*7.65%) =$(57.68)

Subpart A3.

State Income tax withholding

Pre tax pay(calculated earlier)=$754

Calculation of state income tax=$754*3%=$22.62.

Subpart A4

Table showing Calculation for net pay

Answer to 1b

Journal entry

Account . Debit(in $). Credit(in $)

Gross Wages. 774

FICA tax payable . 57.68

Group hospitalization insurance . 20

State taxes payable. 22.62

Federal tax payable . 76

Wage payable . 597.7

As per the Chegg policy I've answered first 4 questions including any subparts.

Particulars Amount(in $) Gross pay 774 Group hospitalization insurance (20) FICA Tax withholding (employee contribution) (57.68) State income tax withholding (22.62) Federal tax withholding (76) Net pay 597.7

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