Principles of Accounting 1
V. NOTES RECEIVABLES-(9 Points)
Determine the due date, the amount of interest and maturity value of the following notes:
Date of Note
Face
Term of
Int.
Due Date
Amount
Note
Rate
March 15
$3,000
90 days
4%
May 12
$5,000
60 days
6%
April 3
$6,000
75 days
5%
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Interest Due
Maturity
Value
VI Bill Bailey is paid $12 per hour, plus time-and-one-half for hours over 40 for a given week. During the
week of February 12, Bill worked 48 hours. FICA taxes are 5%. $50 is withheld for federal income
taxes, $22 is withheld for state income taxes, and $15 is withheld for city income tax from his gross pay.
In addition, Bill's employer must pay FICA taxes of 5%, state unemployment taxes of 2.5%, and
federal unemployment taxes of 1.25% of his gross pay. Calculate the following: (Bill's cumulative
salary to date is $5,000. Round off your answers to two decimal places). (12 points)
a. Bill's gross pay,
b. Bill's net pay or take home pay,
c. The employer's payroll taxes expense
d. The total cost of employing Bill for the week,
