Styles Editing 10. Mary Smith is employed at XYZ Limited, a manufacturer of party supplies. During the year she received various benefits from her employer. These included gift certificates to Hudson Bay store valued at $300; a cash performance award for exceeding her sales target of $200; a 10% discount on all her purchases (worth $500) which was available to all employees; a wedding gift of $300; a holiday gift (fruit basket) worth $400 and the payment of her private health care premiums worth $500. Her employer also contributed $3,000 into her Registered Pension Plan (RPP) during the year. Based on the above information answer the following three (3) questions:

Styles Editing 10. Mary Smith is employed at XYZ Limited, a manufacturer of party supplies. During the year she received various benefits from her employer. These included gift certificates to Hudson Bay store valued at $300; a cash performance award for exceeding her sales target of $200; a 10% discount on all her purchases (worth $500) which was available to all employees; a wedding gift of $300; a holiday gift (fruit basket) worth $400 and the payment of her private health care premiums worth $500. Her employer also contributed $3,000 into her Registered Pension Plan (RPP) during the year. Based on the above information answer the following three (3) questions:

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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Amber, owner of Amber’s Flowers and Gifts, produces gift baskets for various special occasions. Each giftbasket includes fruit or assorted small gifts (e.g., a coffee mug, deck of cards, novelty cocoa mixes, scentedsoap) in a basket that is wrapped in colorful cellophane. Amber has estimated the following unit sales of thestandard gift basket for the rest of the year and for January of next year.September 260October 250November 270December 350January 170Amber likes to have 5% of the next month’s sales needs on hand at the end of each month. This requirement was met onAugust 31. Two materials are needed for each fruit basket:Fruit 2 poundsSmall Gifts 4 itemsThe materials inventory policy is to have 5% of the next month’s fruit needs on hand and 30% of the next month’sproduction needs of small gifts. (The relatively low inventory amount for fruit is designed to prevent spoilage.) Materialsinventory on August 31 met this company policy.1. Prepare a production budget for September,…
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $40 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue $840,000 Variable expenses 630,000 Contribution margin 210,000 Fixed expenses 112,000 Operating income $ 98,000 a.What is FirstCakes' contribution margin per unit? b.What is FirstCakes' monthly breakeven point in units? c.What is FirstCakes' contribution margin ratio? d.What is FirstCakes' monthly breakeven point in sales dollars?
Dillon rented his personal residence at Lake Tahoe for 14 days while he was vacationing in Ireland. Heresided in the home for the remainder of the year. Rental income from the property was $6,500.Expenses associated with use of the home for the entire year were as follows: Real property taxes $ 3,100Mortgage interest 12,000Repairs 1,500Insurance 1,500Utilities 3,900Depreciation 13,000 a. What effect does the rental have on Dillon's AGI? b. What effect does the rental have on Dillon's itemized deductions (assuming he itemizesdeductions before considering deductions associated with the home)?
Jear's Finess Club provides monthly memberships as well as personal training sessions. The personal trainers eam 50% of the revenue for all personal training sessions. The Feness Club also sels nutrition products. Jean's general ledger accounts indicate the following for the year. The front desk staff wages expense remains the same throughout the year Account Membership revenue Personal training revenue Product sales Amount $143.000 $76.000 $60.000 $35.000 $13,000 OA $214,000 OB. $393,000 OC. $181,000 OD. $287.000 Account Personal trainer wages expense Space rental expense Straight line depreciation expense Rental insurance expense Cost of product sold Front desk staff wages expense If a contribution margin income statement is prepared for the year, what is operating income? Anount $11,000 $4,000 $3,000
Park Mischner owns Old Times Buttons, which employs six people. Park wants to perform a benefits analysis report for one of the employees, Avery Bower, for the year. Avery's benefits package is as follows: Annual salary: $22,000 401(k) contribution: 6 percent of annual salary. The company match is 75 percent of employee contribution up to 4 percent. Medical insurance deduction: $230 per month Dental insurance: $15 per month Required: Complete the following Benefits Analysis Report for Avery Bower for the year. Do not include FUTA and SUTA taxes. Note: Round your answers to 2 decimal places. Enter all amounts as positive values. Yearly Benefit Costs Medical insurance Company Cost Avery's Cost $ 9,180.00 $ 2,760.00 Dental insurance $ 490.00 $ EA 180.00 Life insurance $ EA 170.00 $ 69 0.00 AD&D $ 43.00 69 $ 0.00 Short-term disability $ 430.00 $ 0.00 Long-term disability $ 215.00 $ 69 0.00 401(k) $ 880.00 $ 69 1,320.00 Social Security $ 69 1,364.00 $ 69 1,364.00 Medicare $ 69 319.00 $…
Margaret started her own business in the current year and will report a profit for her first year. Her results of operations are as follows: Gross income Travel Contribution to Presidential Election Campaign Transportation 5,300 miles equally across the year, using standard mileage method Entertainment in total Nine gifts at $50 each Rent and utilities for apartment in total (25 percent is used for a home office) Gross income Expenses: Travel Political contribution Transportation Entertainment Complete the table below to determine the net income Margaret should show on her Schedule C. If an amount is zero, enter "0". If required, round the amounts to the nearest dollar. Gifts Rent and utilities Total expenses Taxable business income 45,000 1,000 0 0 225 $45,000 1,000 100 2,625 X X ? X 4,200 450 10,500
Jennifer recently earned a degree in accounting and her first employment opportunity is an accountant at a major corporation. The 401(k) portion of her employment package has a personal investment cap at 20% of her salary and the employer contribution portion is 50% of her contribution. Her annual salary is $56,500 and she chose to invest 14% annually. FUTURE VALUE of $1 Periods 8 9 10 11 3% 1.267 1.305 1.344 1.384 4% 1.369 1.423 1.480 1.539 FUTURE VALUE of ANNUITY of $1 Periods 8 9 10 11 3% 8.892 10.159 11.464 12.808 4% 9.214 10.583 12.006 13.486 Required: Calculate the value of her 401(k) after 10 years at 4%, and then calculate the value of her 401(k) had she invested the maximum amount that her employer would match.
3. Johnathan was provided a private health care plan for his family. The employer paid $3000 of premiums for this plan. He also earned a cash bonus of $800 for being the hardest working employee during the year. Additionally, he received a large painting as a Christmas present from his employer, which has a value of $1250. Answer the question: Private health care plan is ??
Carrie, age 55, is an employee of Rocket, Inc. (Rocket). Rocket sponsors a SEP IRA and would like to contribute the maximum amount to Carrie’s account for the plan year. If Carrie earns $14,000 per year from Rocket, what is the maximum contribution Rocket can make on her behalf to the SEP IRA? a. $3,500. b. $14,000. c. $19,500. d. $57,000.
18. Peggy is an executive for the Tan Furniture Manufacturing Company. She purchased furniture from the company for $9,500, the price Tan ordinarily would charge a wholesaler for the same items. The retail price of the furniture was $12,500, and Tan's cost was $9,000. The company also paid for Peggy's parking space in a garage near the office. The parking fee was $600 for the year. All employees are allowed to buy furniture at a discounted price comparable to that charged to Peggy. However, the company does not pay other employees' parking fees. Peggy's gross income from the above is: a. $0. b. $600. c. $3,500. d. $4,100. e. None of a-d is correct
(c) Prepare George’s monthly contribution format income statement. Assume that he teaches 5,500 clients. (Round per unit values to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 1,234.)
Ff.2.