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An employee receives an hourly rate of $25, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $350; cumulative earnings for year prior to current week, $99,700; Social Security tax rate, 6.0% on maximum of $106,800; and Medicare tax rate, 1.5% on all earnings. What is the net pay for the employee?

Computer equipment was acquired at the beginning of the year at a cost of $55,000, with an estimated residual value of $5,000 and an estimated useful life of five years. Determine the second year’s depreciation expense using the straight-line method.

Red Co. provided services of $550,000 to clients on account. How does this transaction affect Red’s accounts?

Using accrual accounting, expenses are recorded and reported only _____.

Contingent liabilities that are probable but cannot be reasonably estimated are disclosed in the _____.

Which of the following businesses is most likely to use a process cost accounting system?

Treasury stock is reported in the _____ section of the balance sheet.

Which of the items below is not a business organization form?

Orange Inc. had 200,000 shares of $120 par value common stock outstanding at the beginning of the year. During the year, the company issued a 4-for-1 stock split. What is the number of shares outstanding after the split?

A gain is recorded on the sale of property, plant, and equipment when _____.