Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Chapter 9.A, Problem 9BE
Calculating gross and net pay (Learning Objective 8) 10-15 min.
Ali Campbell works as a cook for Jenny’s diner. Her regular pay rate is $15 per hour, with time-and-a-half for hours in excess of 40 per week. Campbell’s payroll deductions include withheld income tax of 10% of total earnings, FICA tax, and a weekly deduction of $15 for a charitable contribution to United Way. Campbell’s employer is required to pay SUTA and FUTA tax. Use a 5.4% SUTA tax rate, and a .6% FUTA tax rate. The state
Requirements
- 1. Assuming Campbell worked 49 hours during the week, compute her gross pay and net pay for the week. Round amounts to the nearest cent.
- 2. Make
journal entries to record wages expense and payroll tax expense for the week. Explanations are not required. Round amounts to the nearest cent.
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The following information is available for the employees of Webber Packing Company for the first week of January Year 11. Kayla earns $26 per hour and 1½ times her regular rate for hours over 40 per week. Kayla worked 50 hours the first week in January. Kayla's federal income tax withholding is equal to 11 percent of her gross pay. Webber pays medical insurance of $100 per week to a retirement plan for her.2. Paula earns a weekly salary of $1,150. Paula's federal income tax withholding is 17 percent of her gross pay. Webber pays medical insurance of $145 per week for Paula and contributes $135 per week to a retirement plan for her.3. Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $75 per week for Paula.Assume the Social Security tax rate is 6 percent on the first $110,000 of salaries and the Medicare tax rate is 1.5 percent of total salaries. The state unemployment tax rate is 5.4 percent and the federal unemployment tax…
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The following information is available for the employees of Webber Packing Company for the first week of January Year 11. Kayla earns $26 per hour and 1½ times her regular rate for hours over 40 per week. Kayla worked 50 hours the first week in January. Kayla's federal income tax withholding is equal to 11 percent of her gross pay. Webber pays medical insurance of $100 per week to a retirement plan for her.2. Paula earns a weekly salary of $1,150. Paula's federal income tax withholding is 17 percent of her gross pay. Webber pays medical insurance of $145 per week for Paula and contributes $135 per week to a retirement plan for her.3. Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $75 per week for Paula.Assume the Social Security tax rate is 6 percent on the first $110,000 of salaries and the Medicare tax rate is 1.5 percent of total salaries. The state unemployment tax rate is 5.4 percent and the federal unemployment tax…
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
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