Exercise 2. During the past week, four employees of the Lovo Inc. worked the number of hours shown in the table. All four employees receive overtime pay at one and a half times their regular hourly rate for any hours worked beyond 40 in a week. Calculate the regular earnings, overtime earnings, and gross pay for each employee.

EmployeeHourly Rate Hours WorkedRegular EarningsOvertime EarningsGross

Ann We $20 $45 $ $ $

Gregory Box 15 44

Dan Knox 19 43

Lana Gonzales30 46

Total $178

Exercise 5. The monthly wages for December, 2020 and the year to-date earnings as of November 30 for the three employees of the Elegant Inc. are listed in the table below.

Requirements:

Calculate the amount of FICA: Social Security Tax and Medicare Tax to be withheld from each of the employee's gross (December only). Apply a 6.2 percent as a social security tax rate using the annual limit of the contribution and benefit base. For earnings in 2020, this base is $137,700. Also, apply a 1.45 percent as a Medicare tax rate. Employers are responsible for withholding the 0.9% Additional Medicare Tax on an individual's wages paid in excess of $200,000 in a calendar year, without

regard to filing status.

EmployeeDecember SalarySocial Security TaxMedicare Tax

The year-to- date earnings(December,2020)(December, 2020)

up to November (11 months)

Road Cast$5.000

Veronica Ergo$16.800

Ann Lola$15.000

Exercise 8. Lola Company's accounting year ends on December 31, 2016. On December 1, Lola signs a note for $12,000, 90-day, and 5% interest. Record (in General Journal) the note, the accrual of interest on December 31 and its payment on March 1 of the next year.