LMN Company has 2 employees Bad and Sad who are paid on terms given below: Bad is working as a salesman. His monthly pay includes a fixed salary plus commission based on the sales turnover. As per the contract, his monthly fixed salary is OMR 2,000 and the commission as follows. He is offered 3% commission for sales above OMR 30,000 up to OMR 60,000 and 4% commission for sales above OMR 60,000. Sad, another employee in the same organization is paid on an hourly basis @ OMR 10 per hour for a normal weekly 6 days and 8 hours per day schedule. The overtime rate in case is a time and a half. Based on the given information you are required to answer the questions given below: 1. Find out the gross pay of Bad for the month if his total sales is OMR 65,000: 2. How much is the gross pay of Bad if his total sales in a month is OMR 25,000? 3. Sad's overtime payment if he works 50 hours in a week; 4. Sad's gross pay if he worked for 50 hours in a week: 5. Sad's gross pay if he works 45 hours in a week

LMN Company has 2 employees Bad and Sad who are paid on terms given below: Bad is working as a salesman. His monthly pay includes a fixed salary plus commission based on the sales turnover. As per the contract, his monthly fixed salary is OMR 2,000 and the commission as follows. He is offered 3% commission for sales above OMR 30,000 up to OMR 60,000 and 4% commission for sales above OMR 60,000. Sad, another employee in the same organization is paid on an hourly basis @ OMR 10 per hour for a normal weekly 6 days and 8 hours per day schedule. The overtime rate in case is a time and a half. Based on the given information you are required to answer the questions given below: 1. Find out the gross pay of Bad for the month if his total sales is OMR 65,000: 2. How much is the gross pay of Bad if his total sales in a month is OMR 25,000? 3. Sad's overtime payment if he works 50 hours in a week; 4. Sad's gross pay if he worked for 50 hours in a week: 5. Sad's gross pay if he works 45 hours in a week

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: J. B. Kenton employs Sharla Knox at a salary of $33,700 a year. Kenton is subject to employer Social…

A: Salary: Salary means Employer gives payment to employees for the work contribution. Total cost…

Q: Jose receives a commission of 2.4% on his monthly sales up to $3,100. The rate then increases to…

A: Lets understand the basics. For calculating commission on sales, we need to use below formula.…

Q: Crane Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Cullumber Company…

A: 1. **Receipt of payment of $84,000 from employees for the cruise packages:** - **Cash (Debit…

Q: Mickie is a regional supervisor who earns a base salary of $45.600 per year plus a 3% commission on…

A: Gross pay is the total amount of money an employee earns from their employer before any deductions…

Q: Edward Dorsey is a part-time employee, and during the biweekly pay period he earned $395. In…

A: Wages paid to employees are subject to withholding taxes. There exist two methods to determine the…

Q: 2. Rona works for a company that pays him a basic monthly salary of 120 000 plus 6.5% commission on…

A: Lets understand the basics. For calculating gross pay, we need to use below formula. Gross pay =…

Q: David is paid a monthly salary of 12,000 and earn a commission of 4% in sale. If he sold the total…

A: The gross pay is the sum total of monthly salary and commission on sales.

Q: Felix Gallegos owns a plumbing repair business. The prevailing billing rate for plumbing repairs is…

A: Selling price is the amount to be charged from customer. Selling price is the composition of cost…

Q: Edward Dorsey is a part-time employee, and during the biweekly pay period he earned $395. In…

A: The total wages are:

Q: ethods outlined below? Hint: There are two ways to determine the deduction. Do NOT use the table…

A: a) The total wages is calculated as,

Q: Mack and Gail are in the electronic and computer retail business and each of them for different…

A: Given, Mack weekly earnings = $880 Commission on sales = 8% Gail weekly earnings = $960 Commission…

Q: 7. Willis Vogal sells for Harvey's King-Size Clothes. He is guaranteed $3.20 per hour or 2.5% of his…

A: Hourly rate = $ 3.20 Pay rate based on sale = 2.5% Hours worked = 79 Sales = $ 6954

Q: BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its…

A: The taxes that are paid by both the employer and the employee to support the country's employee…

Q: Volpe Corporation has five employees who are all paid 1,020 per week. Compute the total FICA taxes…

A: Total payment to 5 employees=Income per week×5=1,020×5=5,100

Q: The company has 3 employees with the following working hours: A. 35 hours Tariff/hour IDR 700 B. 50…

A: Payroll Payment Payroll payment is one of the important activities of the organisation. To manage…

Q: ompany separately sells home security equipment and 12 months of system monitoring service for $210…

A: Revenue Recognition: Following IFRS 15, revenue from the sale of products and services should be…

Question

LMN Company has 2 employees Bad and Sad who are paid on terms given below:
Bad is working as a salesman. His monthly pay includes a fixed salary plus commission based
on the sales turnover. As per the contract, his monthly fixed salary is OMR 2,000 and the
commission as follows. He is offered 3% commission for sales above OMR 30,000 up to OMR
60,000 and 4% commission for sales above OMR 60,000.
Sad, another employee in the same organization is paid on an hourly basis @ OMR 10 per
hour for a normal weekly 6 days and 8 hours per day schedule. The overtime rate in case is a
time and a half.
Based on the given information you are required to answer the questions given below:
1. Find out the gross pay of Bad for the month if his total sales is OMR 65,000:
2. How much is the gross pay of Bad if his total sales in a month is OMR 25,000?
3. Sad's overtime payment if he works 50 hours in a week;
4. Sad's gross pay if he worked for 50 hours in a week:
5. Sad's gross pay if he works 45 hours in a week

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Interpretation of data:

Requirement 1:

Requirement 2:

Requirement 3:

Requirement 4:

Requirement 5:

Trending now

This is a popular solution!

Step by step

Solved in 6 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Federal Insurance Contributions Act (FICA)

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. a. b. c. Gross Pay through August 31 $ 6,400 2,700 133,300 Gross Pay for September $1,700 2,800 9,900 Assuming situation (a), prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities. Complete this question by entering your answer in the tabs below. Employer Payroll taxes Payroll Taxes General Journal Expense Assuming situation (a), compute the payroll taxes expense. (Round your answers to 2 decimal places.) September earnings subject to tax Tax Rate
[The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross Pay through August 31 Gross Pay for September a. $ 6,000 $ 1,500 b. 2,000 2,100 c. 132,900 9,500 Exercise 11-9 (Algo) Payroll-related journal entries LO P3 Assuming situation (a), prepare the employer’s September 30 journal entry to record the employer’s payroll taxes expense and its related liabilities. Record the employer's September 30 payroll taxes expense and its related liabilities. Note: Enter debits before credits. Date General Journal Debit Credit September 30 Payroll taxes expense FICA—Social security taxes payable FICA—Medicare taxes payable Federal…
Shawn, an outside sales representative for Marosh Communications in Caldwell, Idaho, receives a 5 percent commission on all new marketing packages sold within the sales territory. During the week of April 6, there were $9,500 of new subscriptions sold during 40 hours of work. Required: 1. What is Shawn's gross pay? 2. Are the wages subject to minimum wage laws? 1. Gross pay 2. Are the wages subject to minimum wage laws?
1.Jill is paid a yearly salary of $90,000. How does she make per month? 2. A salesman is paid a 6% commission on his net sales. Find his gross wages for the past month if his gross sales totaled $91,568 and he had $5,568 of returns and allowances. 3. A salesman receives a salary of $500 per week plus an 8% commission on all sales in excess of $1,800. What were his wages last week, if gross sales totaled $18,714 and returns were $5,714? Group of answer choices A.$1,481.12 B.$1,981.12 C.$1,040 D.$1,396 4. An auctioneer earns a commission on the total value of the property he sells. If he earns $2,700 on the sale of $18,000 worth of property, at what percentage rate is he paid? Group of answer choices A.0.15% B.15% C.1.5% D.1 1/2% 5. A computer programmer, who is covered by the Fair Labor Standards Act, is paid a salary of $1,260 a week for a normal work week of 35 hours. If she works 42 hours in a week, her gross pay for the week would be Group…
6. Roman Zapata sells electrical fixtures for The Lighting Center. He is guaranteed a salary of $560 a month or 11% of his total sales, whichever is greater. What is his gross pay for a month in which his total sales were $8975? Willis Vooal sells for Hervev's K Cize -UurGirālnieed $3.20 pernour pemod he workec
Sew & More sells sewing machines and sewing supplies. The company recently ran a sales promotion on sewing machines that allowed customers to purchase a new sewing machine using store credit. The terms of the contract stated that customers would make 12 monthly payments that included a 6% annual interest rate. On the date of each sale, Sew & More should record. No revenue until the contract is paid in full. Sales revenue equal to the sales price of the sewing machine, interest revenue equal to the total amount of interest for the contract, and a receivable for the total of the sales price plus the interest. revenue equal to the sales price of the sewing machine plus the total interest to be collected and a receivable for the same amount. revenue equal to the sales price of the sewing machine and a receivable for the same amount.
Cullumber Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Bonita Company employees. The total cruise package price to Bonita employees is $62,000. Cullumber receives a commission of 6% of the total price. Cullumber therefore remits $58,280 to ShipAway. Prepare the journal entry to record (1) the receipt of payment of $60,000 from employees for the cruise ship package and (2) the remittance and revenue recognized by Cullumber Inc. on this transaction. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List all debit entries before credit entries.
Foc
Cecil is a waiter who regularly receives $90 each week in tips and works 40 hours each week. Cecil's employer claims the maximum weekly tip credit that is allowed in this case. The gross weekly pay, excluding tips, that the restaurant should pay Cecil without violating the FLSA is
Company X orders raw materials for EUR 1,000 and manages to obtain a discount of 15% from one of its suppliers. Once raw materials are received, defaults are noted by the warehouse manager. Company X intends a lawsuit against its supplier. Company C's lawyer estimates that Company C might be entitled to receive EUR 200. Decision from the court: the supplier needs to grant a rebate of EUR 150. Prepare the accounting journal entries for the purchase, for the suit and the rebate at the level of Company C.
6. Wilson Rooeboker brokers sales agreements for a major home builders chain. He is paid a straight commission of 1.5% of the contract plus an annual bonus of 2.5% of total contracts over $1,500,000per year. What is lus total pay for a year in which he had total contracts for $2,555,500?
Grainne is an inside saleperson who earns an annual salary of $32800(paid biweekly) plus commission on quarterly sales that is paid on the first pay date on the next quarter. She receives a 1% commission for quarterly sales totaling $0 to $25000, a 2% commission for quarterly sales totaling between $25,001 and $50,000, and a 3% commission for quartlerly sales totaling ovet $50,001. During the second quarter, Grainne's quarerly sales totaled $46,750. What is her gross pay for the first pay period in July? ( do not roud intermediate calculations. Round you answer to 2 decimal places.)