The following ACC 291 accounting study guide is designed to help students taking accounting principles II at the undergraduate level.
Cindy Neuer’s regular hourly wage rate is $16, and she receives an hourly rate of $24 for work in excess of 40 hours. During a January pay period, Cindy works 47 hours. Cindy’s federal income tax withholding is $95, and she has no voluntary deductions. Compute Cindy Neuer’s gross earnings and net pay for the pay period. Assume that the FICA tax rate is 8%.
Gross Earnings = (16 x 40) + (24 x 7) = $808
Mareska Inc. is considering two alternatives to finance its construction of a new $2 million plant.
(a) Issuance of 200,000 shares of common stock at the market price of $10 per share.
(b) Issuance of $2 million, 8% bonds at par.
The following financial data were reported by 3M Company for 2007 and 2008 (dollars in millions).
Northeast Airlines is considering two alternatives for the financing of a purchase of a fleet of airplanes. These two alternatives are:
Plus Checkpoint responses to Questions 3, 8, and 17
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