#'s 38-43

An employee receives an hourly rate of $40, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $350; cumulative earnings for year prior to current week, $99, 700; social security tax rate, 6.0% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings. What is the net pay for the employee? a. $775.00 b. $1, 840.00 c. $1, 562.60 d. $1, 960.00 Cash dividends of $22, 500 were declared during the year. Cash dividends payable were $5,000 at the beginning of the year and $7, 500 at the end of the year. The amount of cash for the payment of dividends during the year is a. $27, 500 b. $20,000 c. $25,000 d. $ 17, 500 When the market rate of interest on bonds is higher than the contract rate, the bonds will sell at a. a premium b. their maturity value c. their face value d. a discount Which one of the following below should be added to net income in calculating net cash flow from operating activities using the indirect method? a. a gain on the sale of land b. an increase in accrued liabilities c. dividends paid on common stock d. a decrease in accounts payable On January 1, 20xx, Swenson Corporation had 40.000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had been issued in a prior period at $20.00 per share. On February 20xx, Swenson purchased 4,000 shares of treasury stock for $24 per share and later sold the treasury shares for $2\ per share on March I, 20xx. The journal entry to record the purchase of the treasury shares on February 1, 20xx, would include a a. debit to Treasury Stock for $96,000. b. credit to a gain account for $ 120,000. c. debit to a loss account for $ 120,000 d. credit to Treasury Stock for $96,000. The charter of a Blue Corporation provides for the issuance of 200,000 shares of common stock (authorized stock). Assume that 120,000 shares were originally issued and 20,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2 per share dividend is declared? a. $ 120,000 b. $ 40,000 c. $200,000 d. $240,000