Question

17. Martin Jackson receives an hourly wage rate of \$23, with time-and-a-half pay for all hours...

17.

Martin Jackson receives an hourly wage rate of \$23, with time-and-a-half pay for all hours worked in excess of 40 hours during a week. Payroll data for the current week are as follows: hours worked, 45; federal income tax withheld, \$207; social security tax rate, 6.0%; and Medicare tax rate, 1.5%. What is the net amount to be paid to Jackson, rounded to the nearest cent?

a.\$803.56

b.\$1,092.50

c.\$1,470.56

d.\$1,781.06

20.

The independent auditor's report

a.describes which financial statements are covered by the audit

b.gives the auditor's opinion regarding the fairness of the financial statements

c.summarizes what the auditor did

d.states that the financial statements were presented on time

Homework Answers

Answer #1

17)

Gross Pay = Earnings at Regular Rate + Earnings at Overtime Rate
Gross Pay = [(\$23 × 40) + (\$23 × 1.5 × 5)] = \$1093

Net Pay = Gross Pay - (Federal Income Tax + Social Security Tax + Medicare Tax)

Net Pay = \$1,093 - [\$207 + (\$1,093 × 6.0%) + (\$1,093 × 1.5%)] = \$804

Ans A = 803.56

20 ) - B - gives the auditor's opinion regarding the fairness of the financial statements

It is basically the opinion that GAAP ( Generally accepted accounting pronciples ) have been followed or not.

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