Bea owner of an automotive dealership, pays one of the salesman, mike a $1,300 draw per week plus 6% on all commissions sales. Mike sold seven cars over the four week period, totaling $186,900 for the month. mike's commission minus the draw is

Bea owner of an automotive dealership, pays one of the salesman, mike a $1,300 draw per week plus 6% on all commissions sales. Mike sold seven cars over the four week period, totaling $186,900 for the month. mike's commission minus the draw is

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sky Company employed Tom Mills in Year 1. Tom earned $5,300 per month and worked the entire year. Assume the Social Security tax rate is 6 percent for the first $110,000 of earnings, and the Medicare tax rate is 1.5 percent. Tom's federal income tax withholding amount is $940 per month. Use 5.4 percent for the state unemployment tax rate and 0.6 percent for the federal unemployment tax rate on the first $7,000 of earnings per employee. Required a. Answer the following questions. (1) What is Tom's net pay per month? (2) What amount does Tom pay monthly in FICA payroll taxes? (3) What is the total payroll tax expense for Sky Company for January Year 1? February Year 1? March Year 1? December Year 1? b. Assume that instead of $5,300 per month Tom earned $9,700 per month. Answer the following questions. (1) What is Tom's net pay per month? (2) What amount does Tom pay monthly in FICA payroll taxes? (3) What is the total payroll tax expense for Sky Company for January Year 1? February Year…
An appliance company has three installers. Larry earns $315 per week, Curly earns $470 per week, and Moe earns $565 per week. The company's SUTA rate is 5,4%, and the FUTA rate is 6.0% minus the SUTA. As usual, these taxes are paid on the first $7,000 of each employee's earnings. (a) How much SUTA and FUTA tax (in s) does the company owe for the first quarter of the year? total SUTA tax total FUTA tax Enter a number. (b) How much SUTA and FUTA tax (in S) does the company owe for the second quarter of the year? total SUTA tax 5 total FUTA tax
Terry is a salesman who has a monthly salary of 25,000 pesos. His total sales for the month amount to 170,000 pesos. How much is his GROSS INCOME for the month if: a. he is paid 4% of his total sales? b. each product costs 2,125 pesos and he is paid 87 pesos for each product he sold? c. he is paid 3% of sales up to 100,000 pesos, 5% of the next 50,000 pesos, and 7.5% of sales beyond 150,000 pesos? d. if he has a quota of 150,000 pesos and he is paid 36% of all sales in excess of that quota?
Jay woks as a salesman for a software company. This month, his sales amount to 450,000 pesos. How much is his total commission if: a) he is paid 11% of his sales? b) each unit costs 3,750 pesos and he receives 425 pesos for each unit sold? c) he is paid 6% of sales up to 200,000 pesos, 13% of the next 150,000 pesos, and 19% of sales beyond 350,000 pesos?
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Paul’s Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 50 percent of their fees in the month the service is provided. In the month following service, Paul collects 40 percent of service fees. The final 10 percent is collected in the second month following service. Paul purchases his supplies on credit and pays 50 percent in the month of purchase and the remaining 50 percent in the month following purchase. Of the supplies Paul purchases, 85 percent is used in the month of purchase, and the remainder is used in the month following purchase. The following information is available for the months of June, July, and August, which are Paul’s busiest months: June 1 cash balance $16,000. June 1 supplies on hand $4,400. June 1 accounts receivable $9,100. June 1 accounts payable $4,300. Estimated sales for June, July, and August are $27,300, $41,000, and $43,900, respectively.…
Paul's Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 40 percent of their fees in the month the service is provided. In the month following service, Paul collects 50 percent of service fees. The final 10 percent is collected in the second month following service. Paul purchases his supplies on credit, and pays 50 percent in the month of purchase and the remaining 50 percent in the month following purchase. Of the supplies Paul purchases, 70 percent is used in the month of purchase, and the remainder is used in the month following purchase. The following information is available for the months of June, July, and August, which are Paul's busiest months: June 1 cash balance $16,700. June 1 supplies on hand $4,500. June 1 accounts receivable $9,400. • June 1 accounts payable $4,400. • Estimated sales for June, July, and August are $28,200, $42,300, and $45,000,…
Humaid is paid a 7% commission on all sales. He sold goods worth RO 15,000 in a month. What is his gross pay if he takes a draw of RO 500? a. RO 550 b. RO 650 c. RO 1011.5 d. RO 1050
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Sophie Gowna, 47 years old, works for an Ontario company with a Bi-weekly pay cycle. She earns $19 per hour and receives over- time paid at time and a half for any hours worked over 44 in a week. Sophie receives $50 cash cell phone allowance per month for working from home and 6% vacation retained and pay later. She also receives $325 cash reimbursement of business travel expenses through payroll in this pay cycle. During this Bi-weekly pay cycle, Sophie worked 92 hours. The company pays $35 gym membership fees per month to the Fit Club for Sophie. The company made $400 one-time tuition payment to the City College for her non-work-related course in this pay period. Sophie pays $25.00 per month in union dues and contributes 8% of her regular hours' wage to a Registered Retirement Savings Plan each pay cycle. What is Sophie's Pensionable Earnings for this pay cycle? A $ 1,929.08 В $ 2,550.23 $ 2,309.31 $ 1,825.23 $ 2,202.15
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Sky Company employed Tom Mills in Year 1. Tom earned $5,900 per month and worked the entire year. Assume the Social Security tax rate is 6 percent for the first $130,000 of earnings, and the Medicare tax rate is 1.5 percent. Tom's federal income tax withholding amount is $870 per month. Use 5.4 percent for the state unemployment tax rate and 0.6 percent for the federal unemployment tax rate on the first $7,000 of earnings per employee other information - Tom's net pay per month= 4587.50 - tom's monthly FICA tax= 442.50 -total payroll tax expense for january, feb, march and dec. year 1= jan= 796.50, feb = 508.50, march= 442.50, dec= 442.50