Answer and Explanation:
As per the given question the solution of given points is given here:-
a. Regular pay for the week = Rate of pay × Hours per week
= $12 × 40 hours
= $480.00
b. Overtime pay for the week = Rate of pay × 8 hours × 1.5 times
= $12 × 8 hours × 1.5 times
= $144.00
c. Total gross wages = (Social security withheld + Medicare tax withheld + Federal income tax withheld + Net pay)
= $38.69 + $9.05 + $54 + $522.6
= $624.00
d. Social security withheld = Total gross wages × Social security tax
= $624 × 6.2%
= $38.69
e. Medicare tax withheld = Total gross wage × Medicare tax rate
= $624 × 1.45%
= $9.05
f. Total withholding = Social security withheld + Medicare tax withheld + Federal income tax withheld
= $38.69 + $9.05 + $54
= $101.74
g. Net pay = Total gross wages - Total withholding
= $624.00 - $101.74
= $522.26
2. The Journal entry is here below:-
Wage Expense Dr, 624
To Social security taxes payable $38.69
To Medicare Tax Payable $9.05
To Federal Income Tax Payable $54
To Wages Payable $522.26
(Being the payroll is recorded)
Answer:
Part a : If JumpStart paid cash
Office Supplies $870 (debit)
Cash $870 (credit)
Part b : If JumpStart placed it on account
Office Supplies $870 (debit)
Account Payable $870 (credit)
Part c : If JumpStart pays the amount due
Account Payable $870 (debit)
Cash $870 (credit)
Explanation:
Part a : If JumpStart paid cash
Recognise an expense for Office Supplies and reduce the assets of cash to reflect outflow of economic benefits in form of cash
Part b : If JumpStart placed it on account
Recognize an expense for Office Supplies and also recognise a Liability - Accounts Payable to reflect a present obligation created by JumpStart to its Supplier
Part c : If JumpStart pays the amount due
Derecognise the Liability - Accounts receivable since the liability has been settled and reduce the assets of cash to reflect outflow of economic benefits in form of cash due to settlement of Account
Answer:
Earth = $90,000
Wind = $67,500
Fire = $202,500
Explanation:
Activity based costing is a costing system that assigns the cost of identified activities , mostly overhead and indirect cost to all products and services produced according to the respective volume of the activities consumed by each of the products and services , using cost drivers.
Workings.
The cost driver in the scenario is Machine set up
Earth = 80 set up
Wind = 60 set up
Fire = 180 set up
Total = 320 set up
General Overhead = 360,000
Earth = 80/320 *360,000 = 90,000
Wind = 60/320*360,000 = 67,500
Fire = 180/320*260000 = 202,500
Answer:
<u>II and III</u>
Explanation:
According to the IRS tax guidelines this two scenario matches them correctly;
The statement that James is Patti's brother, <em>would imply</em> that he (James) would not recognize any income from the sale to be deducted as tax.
Second, assuming Patti is an art dealer and she sold the painting to James because she needed cash quickly, James would not recognize any imputed income from the sale.
Answer:
$1,100
Explanation:
The operating activities are the activities that are include day to day transaction which would result in cash receipts and the cash payments
The cash receipts would be in terms of received cash from customers and the cash payments would be salary expenses, utilities expenses, etc that are paid in cash.
So, the total amount of cash paid for operating activities is
= Rent paid + workers salaries paid
= $600 + $00
= $1,100
