Under a Modified Wage Plan, Jim Phillips Works an Eight-Hour

question 5

Multiple Choice

Under a modified wage plan, Jim Phillips works an eight-hour day and earns $.50 for each finished unit he produces in excess of 200 units. However, he is guaranteed $12.50 per hour as a minimum wage. His production this week was a follows: How much was the make-up guarantee paid to Jim this week?

• A)$10
• B)$5
• C)$15
• D)$12.50

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Definitions:

Owner's Capital Account

An account on a company's balance sheet representing the total investment made by the owner(s), minus any withdrawals.

Financial Statements

Comprehensive reports that provide an overview of a company's financial condition, including balance sheets, income statements, and cash flow statements.

Total Debits

The sum of all debit entries recorded in the accounting ledger, reflecting assets or expenses that have increased.

Total Credits

The sum of all credit entries recorded in a financial account, representing increases in assets or decreases in liabilities.