eBook Show Me How Calculator Calculate Payroll An employee earns $30 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. If the employee worked 54 hours during the week. Assume that the social security tax rate is 6.0%, the Medicare tax rate is 1.5%, and the employee's federal income tax withheld is $295. a. Determine the employee's gross pay for the week. $ 2,100 X b. Determine the employee's net pay for the week. Round your answer to two decimal places. $ 1,438.50 X Feedback Check My Work Gross pay represents the total earnings of an employee for a specific pay period, prior to taxes and deductions. Net pay is also known as take- home pay. Liability Transactions The following items were selected from among the transactions completed by Aston Martin Inc, during the current year: Apr. 15. Borrowed $225,000 from Audi Company, issuing a 30-day, 6% note for that amount. May 1. Purchased equipment by issuing a $320,000, 180-day note to Spyder Manufacturing Co., which discounted the note at the rate of 6%. 15. Paid Audi Company the interest due on the note of April 15 and renewed the loan by issuing a new 60-day, 8% note for $225,000. (Record both the debit and credit to the notes payable account.) July 14. Paid Audi Company the amount due on the note of May 15. Aug. 16. Purchased merchandise on account from Exige Co., $90,000, terms, n/30. Sept. 15. Issued a 45-day, 6% note for $90,000 to Exige Co., on account. Oct. 28. Paid Spyder Manufacturing Co the amount due on the note of May 1. 30. Paid Exige Co. the amount owed on the note of September 15. Nov. 16. Purchased store equipment from Gallardo Co. for $450,000, paying $50,000 and issuing a series of twenty 9% notes for $20,000 each, coming due at 30-day intervals. Dec. 16. Paid the amount due Gallardo Co. on the first note in the series issued on November 16. 28. Settled a personal injury lawsuit with a customer for $87,500, to be paid in January. Aston Martin Inc, accrued the loss in a litigation claims payable account. Required: For a compound transaction, accounts should be listed largest to smallest. 1. Journalize the transactions. If an amount box does not require an entry, leave it blank. Assume a 360-day year. Debit Credit Date Apr. 15 Account Cash Notes Payable Preus Next Debit Credit Date Apr. 15 Account Cash Notes Payable May 1 Equipment Interest Expense Notes Payable May 15 Notes Payable Interest Expense Notes Payable Cash July 14 Notes Payable Interest Expense D C Cash Aug. 16 Inventory Accounts Payable-Exige Co. Sept. 15 Accounts Payable-Exige Co. Notes Payable Previous Next Show Me How Calculator Accounts Payable-Exige Co. Sept. 15 Accounts Payable-Exige Co. Notes Payable Oct. 28 Notes Payable Cash |Oct. 30 Notes Payable Interest Expense Cash I II II III III III II Nov. 16 Store Equipment Notes Payable Cash Dec. 16 Dec. 28 2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: a. Product warranty cost, $26,800. b. Interest on the 19 remaining notes owed to Gallardo Co. If an amount box does not require an entry, leave it blank. Item Account Debit Credit Feedback Check My Work Consider why the note is being issued (for cash, merchandise, other long-term assets). Consider what type of note is being issued (discount or interest-bearing). Consider the definition of proceeds. when making a payment on a note what accounts would be affected? What accounts would have to decrease? Product warranty adjustments are recorded in the same period in which the related sales are recorded. aining notes is an accrued expense adjusting entry, which means that at lea
