Beth's Annual Salary Is $42 120

question 137

Essay

Beth's annual salary is $42 120.00. Her regular work-week is 36 hours and she is paid semi-monthly.
a) Calculate her gross pay period
b) Calculate her hourly rate of pay
c) Calculate her gross pay for a period in which she works 12 hours of overtime at time and one-half regular pay.

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Definitions:

Fiscal Year

A twelve-month period used for accounting purposes and preparing financial statements, which may or may not align with the calendar year.

Owner's Drawings

A withdrawal by the owner of a business for personal use, reducing the equity in the business.

Income Summary

An account used during the closing process that aggregates all income and expense accounts to determine the net profit or loss.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or one operating cycle, whichever is longer.