Kathy Burnett works for Trinity Industries. Her pay rate is $12.84 per hour and she receives overtime

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 her 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. Kathy’s cumulative earnings prior to this pay period total $28,000. Kathy’s wages are subject to the following deductions:

   

1.	Social Security tax at 6.2 percent
2.	Medicare tax at 1.45 percent
3.	Federal income tax (use the withholding table shown in Figure 10.2b)
4.	Health and disability insurance premiums, $151
5.	Charitable contribution, $18
6.	United States Savings Bond, $100

  

1.	Compute Kathy’s regular, overtime, gross, and net pay. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.)

  

Regular time earnings	$
Over time earnings	$
Gross earning	$
Net pay	$

  

2.	Assuming the weekly payroll has been recorded, journalize the payment of her wages for the week ended December 31, 2013. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

   

Date			General Journal	Debit	Credit
Dec. 31, 2013			Salaries payable
			Cash

  

Analyze:

Based on Kathy’s cumulative earnings through December 31, how much overtime pay did she earn this year? (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.)

  

Over time pay

$

Explanation: 1.

Employee		Regular Hours,				Hours			Regular Time				Overtime				Gross
Name		Hourly Rate				Worked			Earnings				Earnings				Earnings
Kathy Burnett			$	12.84			48			$	513.60			$	154.08		$	667.68

   
2.

Gross Pay	$	667.68
Less:
Social Security Tax		41.40
Medicare Tax		9.68
Income Tax Withholding		36.00
Health & Disability		151.00
United Way		18.00
U.S. Savings Bond		100.00
Net Pay	$	311.60

    

Analyze: Kathy earned overtime pay of $1,960.48, calculated as follows:

   

Cumulative earnings, prior to December 31 payroll	$	28,000.00
Add: gross pay for week ending December 31		667.68
Gross pay for the year	$	28667.68
Less: regular pay (40 hrs × 52 weeks × $12.84)		26707.20
Overtime pay for the year	$	1960.48