Principles of Accounting practice exam 3

Principles of Accounting practice exam 3 - Name: _ Date: _...

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Name: __________________________ Date: _____________ 1. Lee Provo is paid $8 per hour, plus time-and-one-half for hours over 40 for a given week. During the week of January 21, Provo worked 46 hours. Social security taxes are 6.2 percent, Medicare taxes are 1.45 percent, $50 is withheld for federal income taxes, $12 is withheld for state income taxes, and $15 is withheld for medical insurance. In addition, Provo's employer must pay social security taxes of 6.2 percent, Medicare taxes of 1.45 percent, state unemployment taxes of 5.4 percent, and federal unemployment taxes of .8 percent. Calculate (a) Provo's gross earnings, (b) Provo's take-home pay, (c) the employer's payroll taxes expense, and (d) the total cost of employing Provo for the week. Round all amounts to the nearest penny. 2. Indicate whether each business practice listed below strengthens (S) or weakens (W) a company's system of internal control. _____ a. Bonding of employees
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This test prep was uploaded on 04/17/2008 for the course EB 003 taught by Professor Odell during the Fall '07 term at Westmont.

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Principles of Accounting practice exam 3 - Name: _ Date: _...

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