Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN: 9781285190907
Author: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher: Cengage Learning
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Question
Chapter 4, Problem 26PC
To determine
Analyze the changes in the profitability of K Services during the three-year period.
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Which of the following is true about
employee pay methods? (You may select
more than one answer. Single click the
box with the question mark to produce a
check mark for a correct answer and
double click the box with the question
mark to empty the box for a wrong
answer. Any boxes left with a question
mark will be automatically graded as
incorrect.)
O Employees must request the
transfer of payroll earnings to their
paycard each period.
Employees must be able to
access the full amount of their net
pay on the pay date.
O Employees do not need to own a
bank account to receive their pay via
direct deposit.
O Employers must keep a record of
all pay disbursements.
As you learned in the previous chapter, Olney Company is a small manufacturing firm located in Newtown, Pennsylvania. The company has a workforce of both hourly and salaried employees. In the last chapter, gross wages were computed for each employee. Adjacent to their name, each employee's gross wages are shown in the Payroll Register.
The next task is computing the FICA withholding for each employee and the employer's liability.
Requirements:
Compute the OASDI for each employee.
Compute the HI for each employee.
Compute the employer FICA liability.
Payroll Register
Complete the steps below:
Compute the OASDI for each employee.
Compute the HI for each employee.
Compute the totals for each tax.
Note: Round your final answers to the cent.
OLNEY COMPANY, INC.Employee Payroll Register For Period Ending January 8, 20--
EARNINGS
DEDUCTIONS
NET PAY
Name
Gross
OASDI
HI
FIT
SIT
SUTA
CIT
SIMPLE
Grp. Ins.
Health Ins.
Ck. No.
Amount
Mangino, R.
$740.00
$fill…
Describe the types of application control used for the following data in a payroll system.a. Employee nameb. Employee numberc. Social Security numberd. Rate per hour or salarye. Marital statusf. Number of dependentsg. Cost centerh. Regular hours workedi. Overtime hours workedj. Total employees this payroll period
Chapter 4 Solutions
Financial Reporting, Financial Statement Analysis and Valuation
Ch. 4 - Common-Size Analysis. Common-size analysis is a...Ch. 4 - Earnings per Share. Firm A reports an increase in...Ch. 4 - Prob. 3QECh. 4 - Profit Margin for ROA versus ROCE. Describe the...Ch. 4 - Concept and Measurement of Financial Leverage....Ch. 4 - Advantages of Financial Leverage. A company...Ch. 4 - Prob. 7QECh. 4 - Nucor, a steel manufacturer, reported net income...Ch. 4 - Phillips-Van Heusen, an apparel manufacturer,...Ch. 4 - TJX, Inc., an apparel retailer, reported net...
Ch. 4 - Boston Scientific, a medical device manufacturer,...Ch. 4 - Valero Energy, a petroleum company, reported net...Ch. 4 - Exhibit 4.22 presents selected operating data for...Ch. 4 - Microsoft Corporation (Microsoft) and Oracle...Ch. 4 - Prob. 17PCCh. 4 - Prob. 18PCCh. 4 - Texas Instruments (TI) designs and manufactures...Ch. 4 - JCPenney operates a chain of retail department...Ch. 4 - Prob. 21PCCh. 4 - Selected data for General Mills for 2007, 2008,...Ch. 4 - Prob. 23PCCh. 4 - Hasbro is a leading firm in the toy, game, and...Ch. 4 - Fitch sells casual apparel and personal care...Ch. 4 - Prob. 26PCCh. 4 - Starwood Hotels (Starwood) owns and operates many...Ch. 4 - Select data for Avis and Hertz for 2012 follow....Ch. 4 - Integrative Case 1.1 introduced the industry...Ch. 4 - Prob. 1ABICCh. 4 - Prob. 1ACICCh. 4 - Prob. 1BAICCh. 4 - Prob. 1BBICCh. 4 - Walmart and Carrefour follow similar strategies....Ch. 4 - Walmart and Carrefour follow similar strategies....
Knowledge Booster
Similar questions
- A business form that shows all the earnings and withholdings for an individual employee is called a(n): pay stub payroll register employee earnings record O salary recordarrow_forwardAssume that you are working with a payroll application that produces weekly paychecks, including paystubs. Listed below are 20 data elements that would appear on the paycheck/paystub. For each numbered item, indicate the immediate (versus ultimate) source of the item. For instance, the immediate source of the number of exemptions for an employee would be the employee master data, as opposed to the ultimate source, which is the W-4 form filed by the employee. Some items may have more than one source, as in the case of item 1. You have the following choices: Arrange your answer as follows: The items to be considered are as follows:arrow_forwardAs you learned in the previous chapter, Kipley Company is a small manufacturing firm located in Pittsburgh, Pennsylvania. The company has a workforce of both hourly and salaried employees. In the last chapter, gross wages were computed for each employee. Adjacent to their name, each employee's gross wages are shown in the Payroll Register. The next task is computing the FICA withholding for each employee and the employer's liability. Requirements: Compute the OASDI for each employee. Compute the HI for each employee. On the Employer Register, compute the employer FICA liability.arrow_forward
- Some employers will pay out employees for any unused sick leave entitlements if they leave the organisation, whereas in other organisatons employees forfeit this entitlement when they leave. Needs answer to the following; Explain how these different types of sick leave entitlements are treated for accounting purposes.arrow_forwardEstablish the payroll requirements for an organisation: describe the scope of payroll services that a business activity statement (BAS) agent can provide identify need for independent expert advice apply knowledge of legislation in relation to National Employment Standards apply knowledge of legislative requirements in regard to payroll payments identify the state and modern awards, and employment agreements, regarding details to be set up in the payroll systemarrow_forward1arrow_forward
- Emotionally distressed employees who have just been terminated may rely on the payroll administrator to explain the documents that are provided to Service Canada. True or Falsearrow_forwardThe needs of management and the requirements of various federal and state laws make it necessary for employers to keep records that will provide all of the following information for each employee EXCEPT a.name, address, and Social Security number. b.gross amount of earnings accumulated since the first of the year. c.number of hours the employee works as a volunteer for the community. d.gross amount of earnings, date of payment, and period of employment covered by each payroll.arrow_forwardIf the client is not an employee, but works for himself or in partnership with others, or is an employee with one organization but also has additional sources of earned income, it is important to discover details of the business itself and the history of the non-employment income source(s) in order to assess the viability and consistency of the business income stream. Listed below are a number of statements relating to business income: 1. In the case of an employee, disability income replacement insurance coverage is generally based on a percentage of pre-tax income. 2. In the case of the self-employed, it is based on pre-tax but after-expense (net) income. 3. In the case of a self-employed client, it is not necessary to take business expenses into consideration. 4. If the business has substantial fixed overhead a separate business overhead expense (BOE) policy may be needed 5. A consultant working from home may only incur expenses while he is working and not require business overhead…arrow_forward
- Which of the following accounts represents the "take-home pay" or "net pay" related to employees? EMPLOYEE BENEFITS PAYABLE OPAYROLL TAX EXPENSE SALARY EXPENSE SALARY PAYABLE TO EMPLOYEESarrow_forwardSome employers will pay out employees for any unused sick-leave entitlements if they leave the organisation, whereas in other organisations employees forfeit this entitlement when they leave. Explain how these different types of sick-leave entitlements are treated for accounting purposes.arrow_forwardduring my practicum internship i was given the task to do Preparation of payroll . what will be my duties and responsibility? with in text citation and referencesarrow_forward
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