Assume the social security tax rate is 6.0% and the Medicare tax rate is 1.5% on all earnings.  What would be the amount of the Medicare tax to withhold from an employee whose gross pay prior to this pay period was $101,000 and his gross earnings for this weekly pay period is $2,000?

What is the gain or loss on sale of a fixed asset if a piece of equipment with a book value of $12,000 is sold for $11,500?

When a bank reconciliation is prepared, what two amounts must equal in order for the double lines to be drawn to indicate that the reconciliation is “in balance?”

When preparing a report form of a Balance Sheet for a merchandising business, assume that the following accounts had the following balances on the Adjusted Trial Balance:  Cash, $40,000; Accounts Receivable, $60,000; Merchandise Inventory, $100,000; Land, $30,000; Equipment, $140,000; Accumulated Depreciation-Equipment, $40,000.  What would be the total amount of Current Assets for this Balance Sheet?  

On September 30, 2005, Dart Co.’s bank statement showed a balance of $8,510.  When preparing the bank reconciliation it was determined that a deposit of $1,900 had been mailed to the bank by Dart Co. on September 29 and was not included in the September 30 bank statement.  It was further determined that $1,125 of outstanding checks had not been included in the September 30 bank statement.  Assuming that the bank had not made an error, what would be the Adjusted Balance for this bank reconciliation for the bank statement section?

When preparing the Multiple-Step Income Statement for a merchandising business, assume that the Gross Profit is $100,000 and that the Total Operating Expenses are $45,000.  What is the $55,000 (Gross Profit minus Total Operating Expenses) called?  

In the closing entries to close the drawing account, what entry would be made?

Assume that the MUST Co. pays a weekly payroll, and the company pays 1 1/2 times the regular rate for overtime.  What would be the gross earnings for an employee whose regular earnings are $20 per hour, and this employee worked 40 hours this pay period?

On September 30, 2005, Dart Co.’s bank statement showed a balance of $8,510, and the checkbook showed a balance of $7,540.  When preparing the bank reconciliation it was determined that a debit memorandum for $25 for service charges was included with the bank statement but had not been recorded in Dart Co.’s books.  Which of the following statement correctly details what should be done with this $25 service charge when preparing the reconciliation?

What is the book value of a piece of equipment that cost $60,000 and has accumulated depreciation of $20,000?