Computing and recording gross and net pay
Henry Striker manages a Frosty Boy Drive-in. His straight-time pay is $10.00 per hour, with time-and-a-half for hours in excess of 40 per week. Striker's payroll deduction include withheld income tax of 8%, FICA tax of 7.65%, and weekly deduction of $5 for a charitable contribution to the United Fund. Striker worked 52 hours during the week.
Requirements:
1. Compute Striker's gross pay and net pay for the week. Carry amounts to the nearest cent.
2. Journalize Frosty Boy's wage expense accrual for Striker's work. An explanation is not required.
3. Journalize the subsequent payment of wages to Striker.