Wilkins Enterprises has two hourly employees, Marcia and Clark. Both employees earn overtime at the rate of 1½ 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 Marcia and Clark was $280 and $250, respectively. The following information is for the first week in January 2016:
a. Calculate the gross pay for each employee for the week.
b. Calculate the net pay for each employee for the week.
c. Prepare the general journal entry to record payment of the wages.