Exercise 9-12 Accounting for estimated liabilities LO P4

Listed below are a few transactions and events of Maxum Company.

1.	Employees earn vacation pay at a rate of one day per month. During December, 32 employees qualify for one vacation day each. Their average daily wage is $300 per employee.
2.	During December, Maxum Company sold 3,200 units of a product that carries a 60-day warranty. December sales for this product total $129,000. The company expects 8% of the units to need warranty repairs, and it estimates the average repair cost per unit will be $11.

Prepare any necessary adjusting entries at December 31, 2015, for Maxum Companys year-end financial statements for each of the above separate transactions and events.

Exercise 9-16A Gross and net pay computation LO P5

Lenny Florita, an unmarried employee, works 50 hours in the week ended January 12. His pay rate is $11 per hour, and his wages are subject to no deductions other than FICASocial Security, FICAMedicare, and federal income taxes. He claims four withholding allowances. Compute his regular pay, overtime pay (for this company, workers earn 150% of their regular rate for hours in excess of 40 per week), and gross pay. Then compute his FICA tax deduction (use 6.2% for the Social Security portion and 1.45% for the Medicare portion), income tax deduction (use the wage bracket withholding table fromExhibit 9A.6.), total deductions, and net pay.(Round your intermediate calculations and finalanswers to 2 decimal places.)