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# Gross earnings and net pay

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BE2-5 Data for Becky Sherrick are presented in BE2-4. Prepare the journal entries to record
(a) Becky's pay and withholdings for the period, and (b) the payment of Becky's wages. Use
January 15 for the end of the pay period and the payment date.

BE2-4 Becky Sherrick's regular hourly wage rate is \$14, and she receives an hourly rate of
\$21 for work in excess of 40 hours. During a January pay period, Becky works 45 hours. Becky's
federal income tax withholding is \$95, her FICA tax withheld is \$53.20, and she has no voluntary
deductions. Compute Becky Sherrick's gross earnings and net pay for the pay period.

#### Solution Preview

Hi there,
<br>
<br>If Becky works for 45 hrs, she will earn \$560 (\$14 X 40) + \$105 (\$21 X 5) = \$665. This is her gross earnings. When deducting \$95 for Fed Tax ...

#### Solution Summary

This question involves the fundamentals of accounting

\$2.49