1. During the first week of January, an employee works 50 hours. For this company, workers earn 150% of their regular rate for hours in excess of 40 per week. Her pay rate is $20 per hour, and her wages are subject to no deductions other than FICA Social Security, FICA Medicare, and federal income taxes. The tax rate for Social Security is 6.2% of the first $128,400 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7000 of an employee's pay. The employee has $84 in federal income taxes withheld. What is the amount of this employee's gross pay for the first week of January?

		$1400
		$1040
		$1500
		$1560
		$1100

2. Springfield Company offers a bonus plan to its employees and the amount of the employee bonuses for the current year is estimated to be $965,000 to be paid during January of the following year. The journal entry on December 31 to record the bonuses is:

		Debit Employee Bonus Expense $965,000; credit Prepaid Employee Bonus $965,000.
		No entry since the bonuses are not paid until January.
		Debit Employee Bonus Expense $965,000; credit Bonus Payable $965,000.
		Debit Unearned Bonuses $965,000; credit Bonus Payable $965,000.
		Debit Estimated Bonus Payable $965,000; credit Cash $965,000.

3. A company had interest expense of $7800, income before interest expense and income taxes of $19,200, and net income of $9600. The company's times interest earned ratio equals:

		0.41.
		0.81.
		2.46.
		1.23.
		2.00.