College Accounting: P10-1A Kathy Burnett works for Trinity Industries

College Accounting
Week 9

P10-1A Computing gross earnings, deterring deductions, journalizing payroll transactions.
Kathy Burnett works for Trinity Industries. Her pay rate is $12.84 per hour and she receives overtime pay at one and one half times for regular hourly rate for any hours worked beyond 40 in a week. During the pay period that ended December 31, 2013, Kathy worked 48 hours. Kathy is married and claims three withholding allowances on her w-4 form. Kath cumulative earning prior to this paying period total $28,000. Kathy's wages are subject to the following deductions'
1. Social security 6.20 percent
2. Medicare tax at 1.45 percent
3. Federal Income tax (use the withholding table shown in figure 10.2b on page 338)
4. Health and disability insurance premiums, $151
5. Charitable contribution, $18
6. United States saving bonds, $100

Instructions:
1. Compute Kathy's regular, overtime, gross, and net pay
2. Assuming the weekly payroll has been recorded; journalize the payment of her wages for the week ended December 31, 2013. Use 54 as the page number for the general journal
Analyze: Based on Kathy's cumulative earnings through December 31, how much overtime pay did she earn this year?
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