Question 1

A ________ shows the pay period dates,hours worked,gross pay,deductions,and net pay of each employee for every pay period.

Accepted Answer

payroll register

Question 2

The wage bracket withholding table is used to:

Accepted Answer

A) Compute social security withholding. 
B) Compute Medicare withholding. 
C) Compute federal income tax withholding. 
D) Prepare the W-4. 
E) Compute unemployment taxes. 
A) Compute social security withholding. 
B) Compute Medicare withholding. 
C) Compute federal income tax withholding. 
D) Prepare the W-4. 
E) Compute unemployment taxes. C

Question 3

During the first week of January,an employee works 46 hours.For this company,workers earn 150% of their regular rate for hours in excess of 40 per week.Her pay rate is $16 per hour,and her wages are subject to no deductions other than FICA Social Security,FICA Medicare,and federal income taxes.The tax rate for Social Security is 6.2% of the first $127,200 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings.The current 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 employee has $80 in federal income taxes withheld.What is the amount of this employee's gross pay for the first week of January?

Accepted Answer

A) $736 
B) $784 
C) $1,104 
D) $1,156 
E) $1,004 
A) $736 
B) $784 
C) $1,104 
D) $1,156 
E) $1,004 B

Question 4

On November 1,Alan Company signed a 120-day,8% note payable,with a face value of $9,000.What is the maturity value of the note on March 1? (Use 360 days a year.)

Accepted Answer

A) $9,000 
B) $720 
C) $9,120 
D) $9,720 
E) $9,240 
A) $9,000 
B) $720 
C) $9,120 
D) $9,720 
E) $9,240

Question 5

On December 1,Victoria Company signed a 90-day,6% note payable,with a face value of $15,000.What is the adjusting entry to record the accrued interest on December 31?

Accepted Answer

A) Debit Interest Expense,$75; Credit Notes Payable,$75. 
B) Debit Interest Expense,$225; Credit Notes Payable,$225. 
C) Debit Interest Expense,$75; Credit Interest Payable,$75. 
D) Debit Interest Expense,$150; Credit Interest Payable,$150. 
E) No adjusting entry is required. 
A) Debit Interest Expense,$75; Credit Notes Payable,$75. 
B) Debit Interest Expense,$225; Credit Notes Payable,$225. 
C) Debit Interest Expense,$75; Credit Interest Payable,$75. 
D) Debit Interest Expense,$150; Credit Interest Payable,$150. 
E) No adjusting entry is required.

Question 6

During August,Boxer Company sells $356,000 in merchandise that has a one year warranty.Experience shows that warranty expenses average about 5% of the selling price.The warranty liability account has a credit balance of $12,800 before adjustment.Customers returned merchandise for warranty repairs during the month that used $9,400 in parts for repairs.The entry to record the estimated warranty expense for the month is:

Accepted Answer

A) Debit Warranty Expense $17,800; credit Estimated Warranty Liability $17,800. 
B) Debit Warranty Expense $5,000; credit Estimated Warranty Liability $5,000. 
C) Debit Warranty Expense $14,400; credit Estimated Warranty Liability $14,400. 
D) Debit Estimated Warranty Liability $9,400; credit Warranty Expense $9,400. 
E) Debit Estimated Warranty Liability $17,800; credit Warranty Expense $17,800. 
A) Debit Warranty Expense $17,800; credit Estimated Warranty Liability $17,800. 
B) Debit Warranty Expense $5,000; credit Estimated Warranty Liability $5,000. 
C) Debit Warranty Expense $14,400; credit Estimated Warranty Liability $14,400. 
D) Debit Estimated Warranty Liability $9,400; credit Warranty Expense $9,400. 
E) Debit Estimated Warranty Liability $17,800; credit Warranty Expense $17,800.

Question 7

An employee earned $155,000 working for an employer in the current year.The current rate for FICA Social Security is 6.2% payable on earnings up to $127,200 maximum per year and the rate for FICA Medicare 1.45% of all earnings.The employee's total FICA payroll tax is:

Accepted Answer

A) $11,857.50. 
B) $9,730.80. 
C) $10,133.90. 
D) $2,247.50. 
E) $0,since the FICA tax is paid entirely by the employer. 
A) $11,857.50. 
B) $9,730.80. 
C) $10,133.90. 
D) $2,247.50. 
E) $0,since the FICA tax is paid entirely by the employer.

Question 8

Obligations not expected to be paid within the longer of one year or the company's operating cycle are reported as:

Accepted Answer

A) Current assets. 
B) Current liabilities. 
C) Long-term liabilities. 
D) Operating cycle liabilities. 
E) Bills. 
A) Current assets. 
B) Current liabilities. 
C) Long-term liabilities. 
D) Operating cycle liabilities. 
E) Bills.

Question 9

When a company is obligated for sales taxes payable,it is reported as a(n):

Accepted Answer

A) Estimated liability. 
B) Contingent liability. 
C) Current liability. 
D) Business expense. 
E) Long-term liability. 
A) Estimated liability. 
B) Contingent liability. 
C) Current liability. 
D) Business expense. 
E) Long-term liability.

Question 10

A company's fixed interest expense is $8,000,its income before interest expense and income taxes is $32,000.Its net income is $9,600.The company's times interest earned ratio equals:

Accepted Answer

A) 0.25. 
B) 0.30. 
C) 0.83. 
D) 3.33. 
E) 4.0. 
A) 0.25. 
B) 0.30. 
C) 0.83. 
D) 3.33. 
E) 4.0.

Question 11

Short-term notes payable:

Accepted Answer

A) Cannot replace an account payable. 
B) Can be issued in return for money borrowed from a bank. 
C) Are not negotiable. 
D) Are a conditional promise to pay. 
E) Rarely involve interest charges. 
A) Cannot replace an account payable. 
B) Can be issued in return for money borrowed from a bank. 
C) Are not negotiable. 
D) Are a conditional promise to pay. 
E) Rarely involve interest charges.

Question 12

When the number of withholding allowances claimed on Form W-4 increases,the amount of income tax withheld decreases.

Accepted Answer

A) True 
 B)False

Question 13

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 $9,900.What is the amount of total unemployment taxes the employer must pay on this employee's wages?

Accepted Answer

A) $336.00. 
B) $420.00. 
C) $534.60. 
D) $594.00. 
E) $0.00. 
A) $336.00. 
B) $420.00. 
C) $534.60. 
D) $594.00. 
E) $0.00.

Question 14

On January 31,Ransom Company's payroll register showed that its employers earned $30,320 of office salaries and $82,750 of sales salaries.Withholdings from the employees' salaries include FICA Social Security taxes as the rate of 6.2%,FICA Medicare taxes at the rate of 1.45%,$16,960 of federal income taxes,$3,350 of medical insurance deductions (which represents 50% of the total cost of the employee medical insurance),and $4,210 of 401(k)retirement contribution deductions.Ransom Company pays the other 50% of the employee insurance cost and matches the employee 401(k)contributions.Several employees earned more than $7,000 for the period which reduced salaries subject to unemployment to $104,000.No employees exceeded the FICA-Social Security taxable wage base.
1.Prepare the journal entry to record Ransom Company's January 31 payroll expenses and liabilities.
2.Prepare the journal entry to record Ransom Company's employer payroll taxes resulting from the January 31 payroll.Ransom's merit rating reduces its state unemployment (SUTA)to 4% of the first $7,000 paid each employee.The federal unemployment tax (FUTA)rate is 0.6%.
3.Prepare the journal entry to record Ransom's additional employee expenses.

Accepted Answer

The answer of On January 31,Ransom Company's payroll register showed...

Question 15

An employee earnings report is a cumulative record of each employee's hours worked,gross earnings,deductions,and net pay.

Accepted Answer

A) True 
 B)False

Question 16

Contingent liabilities are recorded in the accounts if the future event is ________ and the amount owed can be ________.

Accepted Answer

probable;

Question 17

Employer payroll taxes are an added employee ________ beyond the wages and salaries earned by the employees.

Accepted Answer

The answer of Employer payroll taxes are an added employee...

Question 18

All expected future payments are liabilities.

Accepted Answer

A) True 
 B)False

Question 19

Amounts received in advance from customers for future products or services:

Accepted Answer

A) Are revenues. 
B) Increase income. 
C) Are liabilities. 
D) Are not allowed under GAAP. 
E) Require an outlay of cash in the future. 
A) Are revenues. 
B) Increase income. 
C) Are liabilities. 
D) Are not allowed under GAAP. 
E) Require an outlay of cash in the future.

Question 20

Sales Taxes Payable is credited when companies collect taxes from customers.

Accepted Answer

A) True 
 B)False

A ________ shows the pay period dates,hours worked,gross pay,deductions,and net pay of each employee for every pay period.

The wage bracket withholding table is used to:

On November 1,Alan Company signed a 120-day,8% note payable,with a face value of $9,000.What is the maturity value of the note on March 1? (Use 360 days a year.)

On December 1,Victoria Company signed a 90-day,6% note payable,with a face value of $15,000.What is the adjusting entry to record the accrued interest on December 31?

An employee earned $155,000 working for an employer in the current year.The current rate for FICA Social Security is 6.2% payable on earnings up to $127,200 maximum per year and the rate for FICA Medicare 1.45% of all earnings.The employee's total FICA payroll tax is:

Obligations not expected to be paid within the longer of one year or the company's operating cycle are reported as:

When a company is obligated for sales taxes payable,it is reported as a(n):

A company's fixed interest expense is $8,000,its income before interest expense and income taxes is $32,000.Its net income is $9,600.The company's times interest earned ratio equals:

Short-term notes payable:

When the number of withholding allowances claimed on Form W-4 increases,the amount of income tax withheld decreases.

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 $9,900.What is the amount of total unemployment taxes the employer must pay on this employee's wages?

An employee earnings report is a cumulative record of each employee's hours worked,gross earnings,deductions,and net pay.

Contingent liabilities are recorded in the accounts if the future event is and the amount owed can be .

Employer payroll taxes are an added employee ________ beyond the wages and salaries earned by the employees.

All expected future payments are liabilities.

Amounts received in advance from customers for future products or services:

Sales Taxes Payable is credited when companies collect taxes from customers.

Introducing Financial Statements

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters

Exam 9: Reporting and Analyzing Current Liabilities

A ________ shows the pay period dates,hours worked,gross pay,deductions,and net pay of each employee for every pay period.

The wage bracket withholding table is used to:

On November 1,Alan Company signed a 120-day,8% note payable,with a face value of $9,000.What is the maturity value of the note on March 1? (Use 360 days a year.)

On December 1,Victoria Company signed a 90-day,6% note payable,with a face value of $15,000.What is the adjusting entry to record the accrued interest on December 31?

An employee earned $155,000 working for an employer in the current year.The current rate for FICA Social Security is 6.2% payable on earnings up to $127,200 maximum per year and the rate for FICA Medicare 1.45% of all earnings.The employee's total FICA payroll tax is:

Obligations not expected to be paid within the longer of one year or the company's operating cycle are reported as:

When a company is obligated for sales taxes payable,it is reported as a(n):

A company's fixed interest expense is $8,000,its income before interest expense and income taxes is $32,000.Its net income is $9,600.The company's times interest earned ratio equals:

Short-term notes payable:

When the number of withholding allowances claimed on Form W-4 increases,the amount of income tax withheld decreases.

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 $9,900.What is the amount of total unemployment taxes the employer must pay on this employee's wages?

An employee earnings report is a cumulative record of each employee's hours worked,gross earnings,deductions,and net pay.

Contingent liabilities are recorded in the accounts if the future event is ________ and the amount owed can be ________.

Employer payroll taxes are an added employee ________ beyond the wages and salaries earned by the employees.

All expected future payments are liabilities.

Amounts received in advance from customers for future products or services:

Sales Taxes Payable is credited when companies collect taxes from customers.

Introducing Financial Statements

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters

Contingent liabilities are recorded in the accounts if the future event is and the amount owed can be .