Help Please, I\'m super confused... An employee has gross earnings of $2,400 wit
ID: 2497460 • Letter: H
Question
Help Please, I'm super confused...
An employee has gross earnings of $2,400 with withholdings of 6.2% FICAminusOASDI, 1.45 % FICAminusMedicare, $100 for federal income tax and $ 40 for state income tax. How much is the gross pay? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest whole dollar.)
a. 2,116
b 2.076
c. 2,176
d. 2,400 < I think this one
Payment for merchandise sold on credit for $100 subject to 1/10 n/30 was received within the discount periodlong dash—$99 was received. This was recorded with a debit to Sales Discounts for $1, a debit to Cash for $99, and a credit to Accounts Receivable $100, but no mention was made of the subsidiary ledger account. This error will cause:
A.the assets to be overstated.
B.the net income for the period to be understated.
C.the net income for the period to be overstated. << I think this one
D.the control account to not agree with the subsidiary ledger.
The bank deducted another company's check from our account. This would be included on the bank reconciliation asa(n):
A.addition to the balance per books.
B.subtraction from the balance per books. << I think this one
C subtraction from the balance per bank.
D addition to the balance per bank.
The first two numbers of the ABA code listed on the check represent:
A.the code indicating business or personal account.
B.the Federal Reserve District. << I think this one
C.the account number.
D.the routing number.
On June 15, Bob Love earned $5,000 and has the following deductions: FICAminusOASDI 6.2%, FICAminusMedicare 1.45%; federal income tax of $300; and state income tax $40. What is his net pay?
A.$3,400
B.$4,454
C.$5,000
D.$4,277.50 << I think this one
Help Please, I'm super confused...
Explanation / Answer
I.
$2,400.
II.
The control account to not agree with the subsidiary ledger.
Not mentioning subsidiary ledger accounts will not have any impact on assets or income as they are affected by control accounts.
III.
Addition to the balance as per bank.
This error has been made in the bank statement and the balance as per book shows correct state. The check wrongly deducted from our account shall be added to the balance as per bank to bring it to correct state.
IV.
The federal reserve district
V.
Net pay = $5,000 * (6.2% + 1.45%) - $300 - $40 = $4617.50 - $340 = $4277.50
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