Topic Test — Cumulative exam Answers

KaiLynn has total job benefits of $41,000 per year in her sales job. She pays $63 each month for a cell phone for work. She is also required to purchase samples kits which cost $235 each. If KaiLynn paid for 4 samples kits last year, what was her total employment compensation?

Jasmine has a gross pay of $754.80. By how much will Jasmine’s gross pay be reduced if she has the following items withheld?federal tax of $31Social Security tax that is 6.2% of her gross payMedicare tax that is 1.45% of her gross paystate tax that is 18% of her federal tax

Two people quit work and begin college at the same time. Their salary and education information is given in the table below. Salary prior to school Years attending college Total cost of college Salary upon graduating Person A $18,000 3 $45000 $33,000 Person B $27,000 4 $30,000 $37,000 Choose the true statement.

An electric guitar costs $830, with a $225 full-replacement warranty. If the manufacturer sells 532,475 warranties and has to honor 12% of them, how much profit did the manufacturer gain from the warranties?

Which of the following employees has the largest gross pay?

Jason keeps a record of his transactions in a notebook. Looking over his records for the past two weeks, Jason finds that his bank statement does not match his notebook, and he actually has less money than he thought he did. These are the relevant entries in Jason’s notebook:TransactionDebit ($)Credit ($)Beginning Balance 578.65Rent275.60---Paycheck---363.20Charitable donation20.00---Keyboard63.29---Refund on purchase---21.19Groceries44.08---Microwave68.74---Ending Balance 491.33However, Jason’s bank statement says that his ending balance is $473.33. Which of the following is a possible explanation for the discrepancy?

Megan used a reconciliation worksheet provided by her bank. Line 5 should equal line 6 at the end of the reconciliation, but it does not. Friendly Bank Reconciliation Worksheet Amount 1. Enter the statement closing balance. $ 487 13 2. Enter the sum of any outstanding deposits or credits. $ 186 68 3. Add lines 1 and 2. $ 673 81 4. Enter the sum of any outstanding checks or debits. $ 174 01 5. Subtract line 4 from line 3. $ 499 80 6. Enter your checkbook balance. $ 362 60 Note: Lines 5 and 6 should be equal at the end of the reconciliation. Megan wants to first look for a single transaction that could have caused this problem with reconciliation. What is the amount of the transaction that Megan should look for in order to find a solution to the problem?

You plan on making a $235.15 monthly deposit into an account that pays 3.2% interest, compounded monthly, for 20 years. At the end of this period, you plan on withdrawing regular monthly payments. Determine the amount that you can withdraw each month for 10 years, if you plan on not having anything in the account at the end of the 10 year period and no future deposits are made to the account.

Wynona buys some new boots that are priced $85.79. She gets successive discounts of 10% followed by 5% off on the boots. The purchase price of Wynona’s boots is _____ of the original price.

Curtis just received a raise at work increasing his salary by $8,500. He knows that an increase in salary will increase the amount of federal income taxes withheld from his paycheck. Which of the following statements best describes the effect his raise will have on state income tax withholdings?

Given the following information, determine if one of the brands is a better buy.Brand A: 14 ounces for $33.18Brand B: 22 ounces for $52.80

Which of the following employees has the greatest total employee compensation?

A lender estimates the closing costs on a home loan of $90,000 as listed below. Closing Cost Charge Loan origination $180 Title insurance $365 Attorney’s fees $795 Inspection $300 Recording fees $120 Escrow $980 The actual closing costs were: Closing Cost Charge Loan origination $180 Title insurance $340 Attorney’s fees $830 Inspection $375 Recording fees $150 Escrow $1,000 Evaluate the lender's good faith estimate as a percentage of the loan amount.

Marilyn has a biweekly gross pay of $810 and claims 3 federal withholding allowances. Marilyn has all of the following deductions from her gross pay: federal tax from the following table Social Security tax that is 6.2% of her gross pay Medicare tax that is 1.45% of her gross pay state tax that is 21% of her federal tax Determine how Marilyn’s net pay will be affected if she increases her federal withholding allowances from 3 to 4. a. Her net pay will increase by $15.00. b. Her net

Mega Bank Reconciliation Worksheet

For the last 20 years, Terry has made regular quarterly payments in the amount of $308 into an account paying 1.5% compounded quarterly. If, at the end of the 20 year period, Terry stops making deposits, transfers the balance to an account paying 5.5% interest compounded annually, and withdraws a annual salary from the account, determine the amount that he will receive every year for 10 years. Round to the nearest cent.

Vera orders some prints of photos that she uploaded to her computer. She orders 3 of the 5 x 7 prints for $0.89 each, 12 of the 4 x 6 prints for $0.15 each and 1 of the 8 x 10 prints for $2.99. She also orders a photo album for $8.69. Vera pays taxes that are 7% of the total purchase price. Her shipping charges are based on the following table:Amount of PurchaseStandard ShippingExpress Shippingup to $20free$3.50$50 up to $100$6.35$8.20$100 up to $200$7.80$11.60$200 and over$10.50$16.45Vera selects standard shipping and the company bills her credit card $20.78 for the total of the online purchase. Determine if Vera has been billed correctly for her purchase.

Describe how total job benefits and total employee compensation differ.

Mrs. Torres goes out of town on a business trip. She spends 3 nights in a hotel at a charge of $80 per night. She pays 9% tax on the room and tips the maid service 10% of the room charge. Mrs. Torres also has meals worth $109.30 before tax and she tips 15%. If the total cost of her trip is $420.04, approximately what tax rate does Mrs. Torres pay on her meals?