Zolnick Enterprises has two hourly employees, Kelly and Jon. Both employees earn overtime at the rate of 1 ½ times the hourly rate for hours worked in excess of 40 per week. Assume the Social Security tax rate is 6 percent on the first $110,000 of wages and the Medicare tax rate is 1.5 percent on all earnings. Federal income tax withheld for Kelly and Jon was $260 and $220 respectively. The following information is for the first week in January 2016:
| Employee |
Hours Worked |
Wage Rate
per Hour |
| Kelly |
54 |
$32 |
| Jon |
44 |
$26 |
Required
a. Calculate the gross pay for each employee for the week.
b. Calculate the net pay for each employee for the week. (Round intermediate calculations and final answers to 2 decimal places.)
c. Prepare the general journal entry to record payment of the wages. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.)