Compute gross earnings and net pay for the pay period

Jurassic Theme Park does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $9,975. All sales are subject to a 5 percent sales tax. Compute sales taxes payable and make the entry to record sales taxes payable and sales.

Becky’s Grill 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 Grill’s gross earnings and net pay for the pay period.

Solution:

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