Answer:
1. Compute Ashley's net pay for October.
Ashley's net pay = $11,900 - $2,380 - $238 - $125 - $737.80 - $172.55 = $8,246.65
2. Journalize the accrual of salaries expense and the payment related to the employment of Ashley Robertson.
Dr Wages expense 11,900
Dr FICA expense 910.35
Cr Federal income tax withholding payable 2,380
Cr United Way contribution payable 238
Cr Health insurance payable 125
Cr FICA Social Security withholding payable 737.80
Cr FICA Medicare withholding payable 172.55
Cr FICA Social Security tax payable 737.80
Cr FICA Medicare tax payable 172.55
Cr Wages payable 8,246.65
Dr Federal income tax withholding payable 2,380
Dr United Way contribution payable 238
Dr Health insurance payable 125
Dr FICA Social Security withholding payable 737.80
Dr FICA Medicare withholding payable 172.55
Dr FICA Social Security tax payable 737.80
Dr FICA Medicare tax payable 172.55
Dr Wages payable 8,246.65
Cr Cash 12,810.35
Explanation:
monthly salary $11,900
income tax withholding rate 20% = $11,900 x 20% = $2,380
union contribution 2% = $11,900 x 2% = $238
health insurance $125
cumulative earnings September 30, $107,100
FICA taxes:
social security 6.2% = $737.80
Medicare 1.45% = $172.55
no FUTA tax applies
