1)

Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 9 percent. Vail Book Mart engaged in the following transactions for Year 1. Sales tax of 9 percent is collected on all sales. 1. Book sales, not including sales tax, for Year 1 amounted to $271,000 cash. 2. Cash sales of miscellaneous items in Year 1 were $149,000, not including tax. 3. Cost of goods sold was $209,000 for the year. 4. Paid $129,000 in operating expenses for the year. 5. Paid the sales tax collected to the state agency. Required a. What is the total amount of sales tax Vail Book Mart collected and paid for the year? b. What is Vail Book Mart's net income for the year? a. Sales tax collected b. Net income Zolnick Enterprises has two hourly employees: Kelly and Jon. Both employees earn overtime at the rate of 1.5 times the hourly rate for hours worked in excess of 40 per week. Assume the Social Security tax rate is 6 percent on the first $130,000 of wages, and the Medicare tax rate is 1.5 percent on all earnings. Federal income tax withheld for Kelly and Jon was $255 and $233, respectively, for the first week of January. The following information is for the first week in January, Year 1: Employee Kelly Jon Hours Worked 54 49 Wage Rate per Hour $18 $23 Required a. & b. Calculate the gross pay and the net pay for each employee for the week. (Round the intermediate calculations and your final answers to 2 decimal places.) Kelly Jon a. Gross pay b. Net pay