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Question - Henry Sampson manages a Dairy World drive-in. His? straight-time pay is $14 per? hour, with? time-and-a-half for hours in excess of 40 per week. Sampson?'s payroll deductions include withheld income tax of 20?%, FICA? tax, and a weekly deduction of $9 for a charitable contribution to United Way. Sampson worked 59 hours during the week.
Required -
1. Compute Sampson's gross pay and net pay for the week. Assume earnings to date are $17,000.
2. Journalize Dairy World's wages expense accrual for Sampson's work. An explanation is not required.
3. Journalize the subsequent payment of wages to Sampson.
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