60.1K

Verified Solution

Link Copied!

K. Mello Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee: For hourly employees, overtime is paid for hours worked in excess of 40 hours per week. For the current pay period, the computer programmer worked 53 hours and the administrator worked 65 hours. Assume that the social security tax rate was 6.0%, and the Medicare tax rate was 1.5%. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Determine the gross pay and the net pay for each of the three employees for the current pay period. Assume the normal working hours in a week are 40 hours. When required round intermediate calculations and final answers to two decimal places. Evaluating alternative notes A borrower has two alternatives for a loan: (1) issue a $420,000,90-day, 8% note or (2) issue a $420,000,90-day note that the creditor discounts at 8%. Assume a 360-day year. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet a. Compute the amount of the interest expense for each option. Round your answer to the nearest dollar. for each alternative. b. Determine the proceeds received by the borrower in each situation. Round your answers to the nearest dollar. (1) $420,000,90-day, 8% interest-bearing note: $ (2) $420,000,90-day note discounted at 8\%: c. Alternative is more favorable to the borrower because the borrower

Answer & Explanation Solved by verified expert

See Answer