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11 February, 03:30

Selected data from a February payroll register for Coronado Company are presented below. Some amounts are intentionally omitted. Gross earnings: State income taxes $ (3) Regular $9,000 Union dues 190 Overtime (1) Total deductions (4) Total (2) Net pay $7,517 DeductionsAccount debited: FICA taxes $ 765 Salaries and wages expense (5) Federal income taxes 1,128 FICA taxes are 7.65%. State income taxes are 4% of gross earnings.

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  1. 11 February, 03:54
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    1. Overtime = $1,000

    2. Gross Pay = $10,000

    3. State Income Taxes = $400

    4. Total Deductions = $2,483

    5 / Salaries and wages expenses = $10,000 (Gross Pay)

    Explanation:

    The question says to find the following:

    1. Overtime

    2. Total

    3. State Income Taxes

    4. Total Deductions

    5. Salaries and Wages Expense

    1. Overtime

    Overtime is derived after calculating the total Gross Pay (2nd question)

    Total Gross Pay = Regular + Overtime

    $10,000 = $9,000 + Overtime

    Therefore, Overtime = $10,000-$9,000

    Overtime = $1,000

    2. Total Gross Pay (this should be treated before the 1st which is overtime)

    = Gross Pay =

    = calculated as FICA tax expense / the percentage of FICA taxes

    FICA tax expense = $765

    % of FICA taxes = 7.65

    Gross Pay = $765 / 7.65% (0.0765)

    = $10,000

    3. State Income Tax

    The state Income Taxes is derived as follows

    Gross Pay x the given percentage (4%)

    State Income taxes = $10,000 x 0.04

    State Income taxes = $400

    4. Calculate the total deductions

    Total Deductions are the sum of the following

    FICA taxes + federal Income taxes + State Income taxes + Union dues

    = $765 + $1,128+$400+$190

    = $2,483

    5. Salaries and Wages Expense

    The answer to this is simply the derived total gross pay (regular + overtime) Calculated in step 2

    Gross pay = salaries and wages expense = $10,000
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