Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 9.A, Problem 2SE
Calculate net pay (Learning Objective 8) 5-10 min.
Suppose you work for an accounting firm all year and earn a monthly salary of $9,000. No overtime is paid. Your withheld income taxes consume 18% of gross pay. In addition to payroll taxes, you elect to contribute 5% monthly to your retirement plan. Your employer also deducts $230 monthly for your co-payment of the health insurance premium. Compute your net pay for December. Use a 7.65% FICA tax rate, and assume that total earnings (including bonuses) prior to this pay period for the year are $103,600. Round amounts to the nearest cent.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
A student has a savings account earning 12% simple interest. She must pay $1250 for first-semester tuition by September 1 and $1250 for second-semester tuition by January 1. How much must she earn in the summer (by September 1) to pay the first-semester bill on time and still have the remainder of her summer earnings grow to $1250 between September 1 and January 1?
We need to solve for the principal which is represented by _____
answers to choose from^^^^: s, p, t, r
1250= P + P(_________) * 1/3
1250 = P + P(________)
1250 = (________)p
P = $___________ (rounded to the nearest cent) *PLEASE ROUND*
Thus, the student will need to earn $1250 +__________ = $__________ during the summer.
A student has a savings account earning 12% simple interest. She must pay $1250 for first-semester tuition by September 1 and $1250 for second-semester tuition by January 1. How much must she earn in the summer (by September 1) to pay the first-semester bill on time and still have the remainder of her summer earnings grow to $1250 between September 1 and January 1?
Step 1
We know that the student will need $__________ on September 1 for the fall tuition.We must determine the additional amount P she will need so that she can pay her spring tuition on January 1,___________ months later.Since she can earn 12% simple interest on the money she has, we can use the future value for the additive, natrual, compound, simple interest formula.
S = P + Prt
In this problem, we want the future value to be the amount she will owe on January 1, which is S = $___________We know that the interest rate as a decimal is
r =_____________ and the amount of time is t =___________ years.
Suppose that you take out a federal direct loan on September 1 before your senior year for $7500 (the maximum allowed for a dependent student) and plan to begin paying it back on December 1 after graduation (so you will have had the loan for 15 months, including the six-month grace period after leaving school). The interest rate is 4.29% and you pay the interest every quarter until that December 1. On that December 1 you will owe $__Answer 1__, and $__Answer 2__ of that will be interest?
Chapter 9 Solutions
Financial Accounting, Student Value Edition (5th Edition)
Ch. 9.A - Calculate employee payroll (Learning Objective 8)...Ch. 9.A - Calculate net pay (Learning Objective 8) 5-10 min....Ch. 9.A - Employer payroll costs (Learning Objective 8) 5-10...Ch. 9.A - Prob. 4AECh. 9.A - Prob. 5AECh. 9.A - Prob. 6AECh. 9.A - Prob. 7BECh. 9.A - Prob. 8BECh. 9.A - Calculating gross and net pay (Learning Objective...Ch. 9.A - Calculating gross and net pay (Learning Objective...
Ch. 9.A - Calculating gross and net pay (Learning Objective...Ch. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - What is the distinguishing feature of the...Ch. 9 - Prob. 6DQCh. 9 - Will interest expense be more than, less than, or...Ch. 9 - Prob. 8DQCh. 9 - What are the differences between an operating...Ch. 9 - Prob. 10DQCh. 9 - Known liabilities of uncertain amounts should be...Ch. 9 - Prob. 2SCCh. 9 - Prob. 3SCCh. 9 - Prob. 4SCCh. 9 - Which term is used to describe an unsecured bond?...Ch. 9 - Prob. 6SCCh. 9 - Plavix Corporations bonds payable carry a stated...Ch. 9 - Prob. 8SCCh. 9 - Martin s bonds pay interest semiannually on July 1...Ch. 9 - Prob. 10SCCh. 9 - Prob. 11SCCh. 9 - Prob. 12SCCh. 9 - Prob. 1SECh. 9 - Prob. 2SECh. 9 - Prob. 3SECh. 9 - Prob. 4SECh. 9 - Prob. 5SECh. 9 - Prob. 6SECh. 9 - Bond terms (Learning Objective 5) 5-10 min. Match...Ch. 9 - Determining the issue price for bonds (Learning...Ch. 9 - Prob. 9SECh. 9 - Prob. 10SECh. 9 - Accounting for bonds (Learning Objective 5) 15-20...Ch. 9 - Prob. 12SECh. 9 - Prob. 13SECh. 9 - Prob. 14SECh. 9 - Prob. 15SECh. 9 - Prob. 16AECh. 9 - Accounting for notes payable (Learning Objective...Ch. 9 - Prob. 18AECh. 9 - Prob. 19AECh. 9 - Prob. 20AECh. 9 - Prob. 21AECh. 9 - Prob. 22AECh. 9 - Prob. 23AECh. 9 - Classifying notes payable as current or long-term...Ch. 9 - Disclosing liabilities on a balance sheet...Ch. 9 - Prob. 26AECh. 9 - Prob. 27BECh. 9 - Prob. 28BECh. 9 - Prob. 29BECh. 9 - Prob. 30BECh. 9 - Prob. 31BECh. 9 - Prob. 32BECh. 9 - Prob. 33BECh. 9 - Prob. 34BECh. 9 - Classifying notes payable as current or long-term...Ch. 9 - Prob. 36BECh. 9 - Prob. 37BECh. 9 - Prob. 38APCh. 9 - Prob. 39APCh. 9 - Prob. 40APCh. 9 - Prob. 41APCh. 9 - Prob. 42APCh. 9 - Prob. 43APCh. 9 - Prob. 44APCh. 9 - Prob. 45BPCh. 9 - Prob. 46BPCh. 9 - Prob. 47BPCh. 9 - Prob. 48BPCh. 9 - Prob. 49BPCh. 9 - Prob. 50BPCh. 9 - Prob. 51BPCh. 9 - Prob. 1CECh. 9 - Prob. 1CPCh. 9 - Prob. 1CFSAPCh. 9 - Prob. 1EIACh. 9 - Case 2. Sherry Talbot, the CEO of Talbot...Ch. 9 - Prob. 1FACh. 9 - Prob. 1IACh. 9 - Small-Business Analysis Purpose: To help you...Ch. 9 - Prob. 1WC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- 1. Parents decide to start saving money for college education with a $1000 initial investment and in 3 months start to make quarterly deposits of $700. If the account pays 4.75% quarterly, how much will the account be worth after 64 deposits.arrow_forwardSuppose that you take out a federal direct loan on September 1 before your senior year for $7500 (the maximum allowed for a dependent student) and plan to begin paying it back on December 1 after graduation (so you will have had the loan for 15 months, including the six-month grace period after leaving school). The interest rate is 4.29% and you pay the interest every quarter until that December 1. On that December 1 you will owe $__Answer 1__, and $__Answer 2__ of that will be interest? Answer 1: Answer 2:arrow_forwardA person deposits $500 into an account that earns 4.75% annually. If no oth are made, how much interest will the account have earned after 12 years? CCESS Virtual Learning 2022arrow_forward
- The EZ Credit Company offers to loan a college student $6,000 for school expenses. Repayment of the loan will be in monthly installments of $304.07 for 24 months. The total repayment of money is $7,297.68, which includes the original $6,000, $1,207.04 in interest charges, and $90.64 for a required life insurance policy covering the amount of the loan. Assume monthly compounding of interest. What nominal interest rate is being charged on this loan?arrow_forward6. A father borrows P10,000 for the enrolment of his son in college last August. He agrees to pay the principal and interest by paying a certain sum every month for 4 months. Find his monthly payment if he pays 9% interest compounded monthly.arrow_forwardA4 Upon graduation, Terrence purchases a home theatre system through financing $5,000 by his credit card. The card charges 21 percent per year compound monthly. He fully pays the load with the following plan: Pay X in principal at the end of months 1, 2, and 3; pay $2X at the end of months 4, 5, and 6; then 3X at 7, 8, 9; and finally $4X at 10, 11, 12. In addition, Terrence pays the accumulated interest at the end of each interest period. What is the value of X? Make a table to show the payment amounts (principal plus interest) and schedule for the loan.arrow_forward
- Your parents contribute $180 monthly to a college savings plan for you that earns 5.4% compounded monthly. The first deposit was exactly 18 years ago. Find the account balance immediately after today’s monthly deposit and crediting of interest. a. $69,456 b. $65,975 c. $45,589 d. $59,689 e. $72,096arrow_forwardThe Happy ToddlersThe Happy Toddlers is a preparatory school for children three to five years old. Students are enrolled for a school-year. Parents can pay the full tuition fee of P70,000 at the start of the school year (June). There is also an option to pay two installments of P37,000 each at the start of every semester (June 1 and November 1). On the 150 students enrolled, 80 are paid in full at the start of the year. The remaining students are on installment basis. One school year runs from June 1 to March 31. Requirements: Determine the tuition fee revenue for the period December 31. This is the first year of Happy Toddlersarrow_forwardThe Happy ToddlersThe Happy Toddlers is a preparatory school for children three to five years old. Students are enrolled for a school-year. Parents can pay the full tuition fee of P70,000 at the start of the school year (June). There is also an option to pay two installments of P37,000 each at the start of every semester (June 1 and November 1). On the 150 students enrolled, 80 are paid in full at the start of the year. The remaining students are on installment basis. One school year runs from June 1 to March 31. Requirements: Determine the tuition fee revenue for the period December 31. This is the first year of Happy Toddlearrow_forward
- You deposited P1,000 in a savings account that pays 8% interest, compounded quarterly, planning to use it to finish your last year in college. Eighteen months later, you decide to go to Quezon City to become a call center agent rather than continue in school, so you close out your account. How much money will you receive?arrow_forwardA student has a savings account earning 3% simple interest. She must pay $1100 for first-semester tuition by September 1 and $1100 for second-semester tuition by January 1. How much must she earn in the summer (by September 1) to pay the first-semester bill on time and still have the remainder of her summer earnings grow to $1100 between September 1 and January 1? (Round your answer to the nearest cent.)arrow_forwardYou will be in graduate school for the next two years. You borrowed some money from the bank for your graduate education, which the bank has accepted to be paid after you graduate from school in three years. The bank has accepted to the following payment plan: from the beginning of Year 3 (25th month) to end of year 5 (60th month), pay $950 per month 25 and increase payment by 2% every month thereafter. How much money should you put aside each month (equal amount) for the first 24 months (during graduate school) such that you can pay the loan back after graduation? Use an APR of 12%, compounded monthly. find Lump sum present value: [PV]arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY