5. Ace Appliances sells dishwashers with a 3-year warranty. They expect 3% of th
ID: 2594909 • Letter: 5
Question
5. Ace Appliances sells dishwashers with a 3-year warranty. They expect 3% of the dishwashers to need repairs in year 1,7% in year 2 and 15% in year 3. They sell 500 dishwashers in 2009 with the warranty in effect from 2009 to 2011. Each repair is estimated at $40. 114% of the dishwashers need repairs in 2009, what is the 2009 warranty expense? 6. An employee's hourly rate is $25, with time-and-a- half for hours over 40 hours. FICA is withheld at the rate of 8%, federal income tax withholding is 15% and state income tax withholding is 3%. What is the employee's net pay if the employee worked 45 hours this week? Round to the nearest dollar.Explanation / Answer
Answer 5. Warranty Expenses -2009 = 500 Dishwashers X 4% X $40 Warranty Expenses -2009 = $800 Answer 6. Basic Salary - 40 hrs X $25 1,000.00 OT Salary - 5 hrs X $25 X 1.50 times 187.50 Gross Pay 1,187.50 Less: FICA - 8% X $1,187.50 95.00 Less: Federal Income Tax - 15% X $1,187.50 178.13 Less: State Income Tax - 3% X $1,187.50 35.63 308.75 Net Pay 878.75 Answer 42-c. $69,350 Bank's Cash Balance Per Bank Statement 62,300.00 Add: Deposit not recorded by bank 8,500.00 Less: Outstanding Checks (1,450.00) Bank Balance after Reconcilation 69,350.00 Answer 43. ANDERSON COMPANY Bank Recocilation Jun 30, 2014 Bank's Cash Balance Company's Cash Balance Per Bank Statement 10,241.43 Per General Ledger 9,745.06 Add: Add: Deposit in transit, not recorded by bank 5,113.40 Proceeds of note collected by bank 1,900.00 Interest Revenue on Note 75.00 1,975.00 15,354.83 11,720.06 Less: Less: Outstanding Checks: Bank Service Charges (35.00) Chq No 506 (1,948.52) NSF Check (79.00) (114.00) Chq No 510 (1,800.25) (3,748.77) Bank Balance after Reconcilation 11,606.06 Company Balance per Reconcilation 11,606.06
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