Accounting Practice Quiz 3

Bob Stein's hourly wage is $45.00, and he worked 42 hours during the week. Assuming an overtime rate of time and a half over 40 hours, Bob's gross pay is:

$1,935

Calculate, from the following information accumulated by Bob Clark, the adjusted book cash balance at the end of April. Bank statement ending cash balance $3,000 General ledger cash balance ending 4,250 Bank monthly service charge 45 Deposits in transit 2,500 Outstanding checks 1,500 NSF check returned with bank statement 205

$4,000

Bob Love earned $126,400 prior to the payroll period ending June 15. For the current payroll, Bob Love earned $5,000 and has the following deductions: FICA-OASDI (with a limit of $128,400), FICA-Medicare; federal income tax of $300; and state income tax $40. What is his net pay?

$4,463.50

Internal control over a company's assets should include the following procedures:

All of these answers are correct.

The May bank statement for Consulting Services shows a balance of $7300, but the balance per books shows a cash balance of $8,980. Other information includes:1. A check for $200 to pay the electric bill was recorded on the books as $20.2. Included on the bank statement was a note collected by the bank for $400 plus interest of $30.3. Checks outstanding totaled $260.4. Bank service charges were $50.5. Deposits in transit were $2,140.Which item should be subtracted from bank balance during the bank reconciliation?

Outstanding check

The bank statement included bank charges. On the bank reconciliation, this item is:

a deduction from the balance per company books

A $100 petty cash fund has cash of $20 and valid receipts for $40. The entry to replenish the fund would include a:

debit to Over/Short for $40

Sam's catering made a payment via check for $64 but it is incorrectly recorded on the books as $46. The $18 error should be shown on the bank reconciliation as:

deducted from the balance per books.

The number of allowances claimed by an employee determines how much will be withheld from their paycheck for:

federal income tax

Outstanding checks:

have not been processed by the bank for payment but have been subtracted in the checkbook.