Question 1

To compute the amount of tax withheld from an employee's pay,employers can use a __________________________ table.

Accepted Answer

wage brack

Question 2

Which of the following do not apply to unearned revenues?

Accepted Answer

A) Also called deferred revenues. 
B) Amounts received in advance from customers for future delivery of products or services. 
C) Also called collections in advance. 
D) Also called prepayments. 
E) Amounts to be received in the future from customers for delivery of products or services in the current period. 
A) Also called deferred revenues. 
B) Amounts received in advance from customers for future delivery of products or services. 
C) Also called collections in advance. 
D) Also called prepayments. 
E) Amounts to be received in the future from customers for delivery of products or services in the current period.

Question 3

General Co.entered into the following transactions involving short-term notes payable.
On May 14,General purchased $40,000 merchandise from Steller Co. ,terms are 2/15,n/30.General uses the perpetual inventory system.On May 29,General replaced the May 14 account payable with a 60-day,$36,000 note bearing 8% annual along with paying $4,000 in cash.On July 28,General paid the amount due on the note at maturity.
Prepare journal entries for all the preceding transactions and events.

Accepted Answer

The answer of General Co.entered into the following transactions involving...

Question 4

An employee earned $128,500 working for an employer in the current year.The current rate for FICA Social Security is 6.2% payable on earnings up to $117,000 maximum per year and the rate for FICA Medicare 1.45%.The employer's total FICA payroll tax for this employee is:

Accepted Answer

A) $9,117.25. 
B) $9,830.25. 
C) $879.75. 
D) $8,950.50. 
E) $0,since the FICA tax is only deducted from an employee's pay. 
A) $9,117.25. 
B) $9,830.25. 
C) $879.75. 
D) $8,950.50. 
E) $0,since the FICA tax is only deducted from an employee's pay.

Question 5

FUTA taxes are:

Accepted Answer

A) Social Security taxes. 
B) Medicare taxes. 
C) Employee income taxes. 
D) Unemployment taxes. 
E) Employee deductions. 
A) Social Security taxes. 
B) Medicare taxes. 
C) Employee income taxes. 
D) Unemployment taxes. 
E) Employee deductions.

Question 6

Uncertainties such as natural disasters are:

Accepted Answer

A) Not contingent liabilities because they are future events not arising from past transactions or events. 
B) Contingent liabilities because they are future events arising from past transactions or events. 
C) Disclosed because of their usefulness to financial statements. 
D) Estimated liabilities because the amounts are uncertain. 
E) Reported in the same way as debt guarantees. 
A) Not contingent liabilities because they are future events not arising from past transactions or events. 
B) Contingent liabilities because they are future events arising from past transactions or events. 
C) Disclosed because of their usefulness to financial statements. 
D) Estimated liabilities because the amounts are uncertain. 
E) Reported in the same way as debt guarantees.

Question 7

Employees earn vacation pay at the rate of one day per month.During the month of July,25 employees qualify for one vacation day each.Their average daily wage is $100 per day.What is the amount of vacation benefit expense to be recorded for the month of July?

Accepted Answer

A) $25 
B) $100 
C) $250 
D) $2,500 
E) $25,000 
A) $25 
B) $100 
C) $250 
D) $2,500 
E) $25,000

Question 8

Athena Company's salaried employees earn two weeks of vacation per year.It pays $858,000 in total employee salaries for 52 weeks but its employees work only 50.Record Athena Company's weekly journal entry to record the vacation expense:

Accepted Answer

A) Debit Vacation Benefits Expense $16,500;credit Vacation Benefits Payable $16,500. 
B) Debit Vacation Benefits Expense $17,160;credit Vacation Benefits Payable $17,160. 
C) Debit Vacation Benefits Expense $17,875;credit Vacation Benefits Payable $17,875. 
D) Debit Vacation Benefits Payable $17,160;credit Vacation Benefits Expense $17,160. 
E) Debit Vacation Benefits Payable $16,500;credit Vacation Benefits Expense $16,500. 
A) Debit Vacation Benefits Expense $16,500;credit Vacation Benefits Payable $16,500. 
B) Debit Vacation Benefits Expense $17,160;credit Vacation Benefits Payable $17,160. 
C) Debit Vacation Benefits Expense $17,875;credit Vacation Benefits Payable $17,875. 
D) Debit Vacation Benefits Payable $17,160;credit Vacation Benefits Expense $17,160. 
E) Debit Vacation Benefits Payable $16,500;credit Vacation Benefits Expense $16,500.

Question 9

A _____________________ is a seller's obligation to replace or correct a product or service that fails to perform as expected within a specified period.

Accepted Answer

The answer of A _____________________ is a seller's obligation to...

Question 10

Debt guarantees are:

Accepted Answer

A) Never disclosed in the financial statements. 
B) Considered to be contingent liabilities. 
C) A bad business practice. 
D) Recorded as liabilities even though it is highly unlikely that the original debtor will default. 
E) Considered to be current liabilities. 
A) Never disclosed in the financial statements. 
B) Considered to be contingent liabilities. 
C) A bad business practice. 
D) Recorded as liabilities even though it is highly unlikely that the original debtor will default. 
E) Considered to be current liabilities.

Question 11

The current FUTA tax rate is 0.6%,and the SUTA tax rate is 5.4%.Both taxes are applied to the first $7,000 of an employee's pay.Assume that an employee earned total wages of $2,900 in the current period and had cumulative pay for prior periods of $5,800.What is the amount of unemployment taxes the employer must pay on this employee's wages for the current period?

Accepted Answer

A) $420.00. 
B) $348.00. 
C) $72.00. 
D) $174.00. 
E) $0.00. 
A) $420.00. 
B) $348.00. 
C) $72.00. 
D) $174.00. 
E) $0.00.

Question 12

Vacation benefits are a type of _______________ liability.

Accepted Answer

The answer of Vacation benefits are a type of _______________...

Question 13

Recording employee payroll deductions may involve:

Accepted Answer

A) Liabilities to the employer. 
B) Liabilities to federal and state governments. 
C) Expenses for state unemployment. 
D) Expenses for the gross wages and salaries. 
E) Expenses for the employer portion of any medical insurance. 
A) Liabilities to the employer. 
B) Liabilities to federal and state governments. 
C) Expenses for state unemployment. 
D) Expenses for the gross wages and salaries. 
E) Expenses for the employer portion of any medical insurance.

Question 14

If a company has advance subscription sales totaling $45,000 for the upcoming year when four quarterly journals will mailed to customers,the receipt of cash would be journalized as:

Accepted Answer

A) Debit Cash $45,000;credit Unearned Revenue $45,000. 
B) Debit Unearned Revenue $45,000;credit Sales $45,000. 
C) Debit Cash $45,000,credit Sales $45,000. 
D) Debit Sales $45,000,credit Unearned Revenue $45,000. 
E) Debit Prepaid Subscriptions $45,000,credit Sales $45,000. 
A) Debit Cash $45,000;credit Unearned Revenue $45,000. 
B) Debit Unearned Revenue $45,000;credit Sales $45,000. 
C) Debit Cash $45,000,credit Sales $45,000. 
D) Debit Sales $45,000,credit Unearned Revenue $45,000. 
E) Debit Prepaid Subscriptions $45,000,credit Sales $45,000.

Question 15

An employee earned $37,000 during the year working for an employer when the maximum limit for Social Security was $117,000.The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%.The employee's annual FICA taxes amount is:

Accepted Answer

A) $2,294.00. 
B) $536.50. 
C) $2,830.50. 
D) $1,757.50. 
E) $8,950.50. 
A) $2,294.00. 
B) $536.50. 
C) $2,830.50. 
D) $1,757.50. 
E) $8,950.50.

Question 16

Star Recreation receives $48,000 cash in advance ticket sales for 12 home games.Record the advance ticket sales on April 30.Record the revenue earned for the first home game played on August 14.

Accepted Answer

The answer of Star Recreation receives $48,000 cash in advance...

Question 17

The payroll records of a company provided the following data for the weekly pay period ended December 7:   The FICA social security tax rate is 6.2% and the FICA Medicare tax rate is 1.45% on all of this week's wages paid to each employee.The federal and state unemployment tax rates are 0.8% and 5.4%,respectively,on the first $7,000 paid to each employee.Prepare the journal entries to (a)accrue the payroll and (b)record payroll taxes expense.

Accepted Answer

The answer of The payroll records of a company provided...

Question 18

Gary Marks is paid on a monthly basis.For the month of January of the current year,he earned a total of $8,288.FICA tax for Social Security is 6.2% and the FICA tax for Medicare is 1.45%.The FUTA tax rate is 0.6%,and the SUTA tax rate is 5.4%.Both unemployment taxes are applied to the first $7,000 of an employee's pay.The amount of Federal Income Tax withheld from his earnings was $1,375.17.What is the amount of the employer's payroll taxes expenses for this employee?

Accepted Answer

A) $2,009.21 
B) $1,131.31 
C) $2,506.48 
D) $420.00 
E) $1,054.04 
A) $2,009.21 
B) $1,131.31 
C) $2,506.48 
D) $420.00 
E) $1,054.04

Question 19

A company has 90 employees and a weekly payroll of $117,000.The FICA-social security tax withheld totals $7,254 and the FICA-Medicare tax withheld totals $1,696.50.The total withholding for federal income tax is $16,500.Prepare the journal entry to accrue this week's salaries expense and withholdings.

Accepted Answer

The answer of A company has 90 employees and a...

Question 20

A ___________________ is a potential obligation that depends on a future event arising from a past transaction or event.

Accepted Answer

contingent

Exam 11: Current Liabilities and Payroll Accounting

To compute the amount of tax withheld from an employee's pay,employers can use a __________________________ table.

Which of the following do not apply to unearned revenues?

An employee earned $128,500 working for an employer in the current year.The current rate for FICA Social Security is 6.2% payable on earnings up to $117,000 maximum per year and the rate for FICA Medicare 1.45%.The employer's total FICA payroll tax for this employee is:

FUTA taxes are:

Uncertainties such as natural disasters are:

Employees earn vacation pay at the rate of one day per month.During the month of July,25 employees qualify for one vacation day each.Their average daily wage is $100 per day.What is the amount of vacation benefit expense to be recorded for the month of July?

Athena Company's salaried employees earn two weeks of vacation per year.It pays $858,000 in total employee salaries for 52 weeks but its employees work only 50.Record Athena Company's weekly journal entry to record the vacation expense:

A _____________________ is a seller's obligation to replace or correct a product or service that fails to perform as expected within a specified period.

Debt guarantees are:

Vacation benefits are a type of _______________ liability.

Recording employee payroll deductions may involve:

If a company has advance subscription sales totaling $45,000 for the upcoming year when four quarterly journals will mailed to customers,the receipt of cash would be journalized as:

An employee earned $37,000 during the year working for an employer when the maximum limit for Social Security was $117,000.The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%.The employee's annual FICA taxes amount is:

Star Recreation receives $48,000 cash in advance ticket sales for 12 home games.Record the advance ticket sales on April 30.Record the revenue earned for the first home game played on August 14.

A ___________________ is a potential obligation that depends on a future event arising from a past transaction or event.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resources, and Intangibles

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Cost Accounting

Process Cost Accounting

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Appendix B: Time Value of Money

Appendix C: Activity-Based Costing

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