Grammy's Bakery had the following information for the pay period ending June 30: $$\begin{array} { | l | c | c | r | c | c | }
\hline \begin{array} { c }
\text { Employee } \
\text { Name }
\end{array} & \begin{array} { c }
\text { Pay } \
\text { rate }
\end{array} & \begin{array} { c }
\text { Hours } \
\text { worked }
\end{array} & \begin{array} { c }
\text { Cumulative } \
\text { earnings }
\end{array} & \text { Department } & \begin{array} { c }
\text { Federal } \
\text { income tax } \
\text { withheld }
\end{array} \
\hline \text { P. Ganster } & \$ 2,000 & \text { Salaried } & \$ 12,000 & \text { Kitchen } & \$ 86.00 \
\hline \text { T. Baker } & 10.00 / \mathrm { hr } & 50 & 6,500 & \text { Office } & 22.00 \
\hline
\end{array}$$ $$\text { Assume : }$$ FICA-OASDI applied to the first $106,800 at a rate of 6.2%.
FICA-Medicare applied at a rate of 1.45%.
FUTA applied to the first $7,000 at a rate of 0.8%.
SUTA applied to the first $7,000 at a rate of 5.6%.
State income tax is 3.8%.
Given the above information,what would be the amount applied to Kitchen Salaries Expense?

Question

Grammy's Bakery had the following information for the pay period ending June 30: $$\begin{array} { | l | c | c | r | c | c | } 
\hline \begin{array} { c } 
\text { Employee } \
\text { Name }
\end{array} & \begin{array} { c } 
\text { Pay } \
\text { rate }
\end{array} & \begin{array} { c } 
\text { Hours } \
\text { worked }
\end{array} & \begin{array} { c } 
\text { Cumulative } \
\text { earnings }
\end{array} & \text { Department } & \begin{array} { c } 
\text { Federal } \
\text { income tax } \
\text { withheld }
\end{array} \
\hline \text { P. Ganster } & \$ 2,000 & \text { Salaried } & \$ 12,000 & \text { Kitchen } & \$ 86.00 \
\hline \text { T. Baker } & 10.00 / \mathrm { hr } & 50 & 6,500 & \text { Office } & 22.00 \
\hline
\end{array}$$ $$\text { Assume : }$$ FICA-OASDI applied to the first $106,800 at a rate of 6.2%.
FICA-Medicare applied at a rate of 1.45%.
FUTA applied to the first $7,000 at a rate of 0.8%.
SUTA applied to the first $7,000 at a rate of 5.6%.
State income tax is 3.8%.
Given the above information,what would be the amount applied to Kitchen Salaries Expense?

Quizplus · Accepted Answer

The Kitchen Salaries Expense would include the salary of P. Ganster, who is a salaried employee in the kitchen. Since the pay rate for P. Ganster is $2,000 (presumably per pay period as no other period is specified), the amount applied to Kitchen Salaries Expense for the pay period ending June 30 would be a debit of $2,000, reflecting an increase in expense.

Grammy's Bakery Had the Following Information for the Pay Period