Question

PLEASE READ CAREFULLY AND SHOW WORK :)

Q3

During the first week of January, an employee works 45 hours. For this company, workers earn 150% of their regular rate for hours in excess of 40 per week. Her pay rate is $36 per hour, and her wages are subject to no deductions other than FICA Social Security, FICA Medicare, and federal income taxes. The tax rate for Social Security is 6.2% of the first $128,400 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7000 of an employee's pay. The employee has $100 in federal income taxes withheld. What is the amount of this  employee's net pay for the first week of January?  (Round your intermediate calculations to two decimal places.)

		$230.82
		$1710.00
		$1579.19
		$1479.19
		$1940.82

Assume that the custodian of a $450 petty cash fund has $56.30 in coins and currency plus $389.00 in receipts at the end of the month. The entry to replenish the petty cash fund will include:

		A debit to Petty Cash for $389.00.
		A credit to Cash for $393.70.
		A credit to Cash Over and Short for $4.70.
		A debit to Cash for $384.30.
		A debit to Cash for $393.70.

Q4

Assume that the custodian of a $585.00 petty cash fund has $107.50 in coins and currency plus $463.50 in receipts at the end of the month. The entry to replenish the petty cash fund will include:

		A debit to Cash for $449.5.
		A debit to Cash Over and Short for $14.00.
		A credit to Cash Over and Short for $477.50.
		A debit to Petty Cash for $463.50.
		A credit to Cash for $463.50.

Q41

During the month of July, Clanton Industries issued a check in the amount of $778 to a supplier on account. The check did not clear the bank during July. In preparing the July 31 bank reconciliation, the company should:

		Make a journal entry in the company records for an error.
		Add the check amount to the book balance of cash.
		Deduct the check amount from the book balance of cash.
		Add the check amount to the bank balance.
		Deduct the check amount from the bank balance.

Answer 1

3	$1,479.19
	Regular Pay (40 hrs x $36)	$1,440.00
	Overtime (5 hrs x $36 x 150%)	$270.00
	Total Gross Pay	$1,710.00
	Less: Deduction
	Social Security ($1,710.00 x .062)	$106.02
	Medicare ($1,710.00 x .0145)	$24.80
	Federal	$100.00
	Net Pay	$1,479.19
	A credit to Cash for $393.70.
	[$389.00 + ($450 - $56.30 - $389.00)]
4	A debit to Cash Over and Short for $14.00.
41	Deduct the check amount from the bank balance.