What entry must joe painting service make on december

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Ann Ellis's regular rate of pay is $15 per hour with one and one-half times her regular rate for any hours which exceed 40 hours per week. She worked 44 hours last week. Therefore, her gross wages were Gary Dittman, an employee of Hopkins Company, has gross earnings for the month of October of $6,000.

Question 1: FICA taxes are 8% of gross earnings, federal income taxes amount to $952 for the month, state income taxes are 2% of gross earnings, and authorizes voluntary deductions of $15 per month to the United Way. What is the net pay for Gary?

Question 2: On September 1, Joe's Painting Service borrows $100,000 from National Bank on a 4-month, $100,000, 6% note. What entry must Joe's Painting Service make on December 31 before financial statements are prepared?

Reference no: EM132503395

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