Tammy’s regular hourly wage rate is $20, and she receives an hourly rate of $30 for work in excess of 40 hours. During a January pay period, Tammy works 46 hours. Tammy’s federal income tax withholding is $97, and she has no voluntary deductions. Assume that the FICA tax rate is 7.65%.
Prepare the employer’s journal entries to record
(a) Betsy’s pay for the period and
(b) the payment of Betsy’s wages.
Use January 15 for the end of the pay period and the payment date.

The journal entries are shown below:

Explanation:

The journal entries are as follows

On Jan 15

Salaries and wages expense$1,010  

        To Federal Income tax payable  $97

         To FICA Tax payable  $77.265   ($1,010 × 7.65%)

         To Salaries and wages payable  $853.765

(Being the salaries and wages expense is recorded)

On Jan 15

Salaries and wages payable$853.765

             To Cash  $853.765

(Being the payment of the wages is recorded)

The computation is shown below:

For salaries and wages expense

= ($20 × 40 hours) + ($30 × 7 hours)

= $1,010

answer; the above statement is (true);