Question 1

Cash - Payroll Checking is a(n):

Accepted Answer

A) contra-asset. 
B) liability. 
C) asset. 
D) expense. 
A) contra-asset. 
B) liability. 
C) asset. 
D) expense.

Question 2

Kristi's Mentoring had the following information for the pay period ending September 30:
   Assume:
FICA-OASDI applied to the first $117,000 at a rate of 6.2%.
FICA-Medicare applied at a rate of 1.45%.
FUTA applied to the first $7,000 at a rate of 0.8%.
SUTA applied to the first $7,000 at a rate of 5.6%.
State income tax is 3.8%.
Employees contribute to their retirement fund at a rate of 5.5% of their gross earnings.
-Compute the total overtime earnings.

Accepted Answer

The answer of Kristi's Mentoring had the following information for...

Question 3

Kristi's Mentoring had the following information for the pay period ending September 30:
   Assume:
FICA-OASDI applied to the first $117,000 at a rate of 6.2%.
FICA-Medicare applied at a rate of 1.45%.
FUTA applied to the first $7,000 at a rate of 0.8%.
SUTA applied to the first $7,000 at a rate of 5.6%.
State income tax is 3.8%.
Employees contribute to their retirement fund at a rate of 5.5% of their gross earnings.
-Compute the total gross earnings for the office.

Accepted Answer

The answer of Kristi's Mentoring had the following information for...

Question 4

The balance in the Wages and Salaries Expense account is equal to net pay.

Accepted Answer

A) True 
 B)False

Question 5

Kristi's Mentoring had the following information for the pay period ending September 30:
   Assume:
FICA-OASDI applied to the first $117,000 at a rate of 6.2%.
FICA-Medicare applied at a rate of 1.45%.
FUTA applied to the first $7,000 at a rate of 0.8%.
SUTA applied to the first $7,000 at a rate of 5.6%.
State income tax is 3.8%.
Employees contribute to their retirement fund at a rate of 5.5% of their gross earnings.
-Compute the employees' FICA-OASDI.

Accepted Answer

The answer of Kristi's Mentoring had the following information for...

Question 6

A company must pay Form 941 taxes electronically if:

Accepted Answer

A) they do business in multiple states. 
B) they pay more than $2,500 in a given quarter. 
C) they pay less than $2,500 in a given quarter. 
D) The company would never have to pay electronically. 
A) they do business in multiple states. 
B) they pay more than $2,500 in a given quarter. 
C) they pay less than $2,500 in a given quarter. 
D) The company would never have to pay electronically.

Question 7

The payment of FUTA would include:

Accepted Answer

A) a debit to FUTA Payable. 
B) a credit to FUTA Payable. 
C) a debit to FUTA Expense. 
D) a credit to FUTA Expense. 
A) a debit to FUTA Payable. 
B) a credit to FUTA Payable. 
C) a debit to FUTA Expense. 
D) a credit to FUTA Expense.

Question 8

Kristi's Mentoring had the following information for the pay period ending September 30:
   Assume:
FICA-OASDI applied to the first $117,000 at a rate of 6.2%.
FICA-Medicare applied at a rate of 1.45%.
FUTA applied to the first $7,000 at a rate of 0.8%.
SUTA applied to the first $7,000 at a rate of 5.6%.
State income tax is 3.8%.
Employees contribute to their retirement fund at a rate of 5.5% of their gross earnings.
-Compute the total deductions.

Accepted Answer

The answer of Kristi's Mentoring had the following information for...

Question 9

Form SS-4 is:

Accepted Answer

A) completed to obtain an EIN. 
B) submitted to summarize the W-2 forms to the Social Security Administration. 
C) submitted quarterly to pay FIT and FICA taxes. 
D) submitted annually to pay unemployment taxes. 
A) completed to obtain an EIN. 
B) submitted to summarize the W-2 forms to the Social Security Administration. 
C) submitted quarterly to pay FIT and FICA taxes. 
D) submitted annually to pay unemployment taxes.

Question 10

Form 941 taxes include OASDI,Medicare,and federal unemployment tax.

Accepted Answer

A) True 
 B)False

Question 11

Using the information provided below,prepare a journal entry to record the payroll tax expense for Mr.B's Carpentry.
   
Assume:
FICA tax rates are: OASDI 6.2% on a limit of $117,000 and Medicare 1.45%.
State unemployment tax rate is 2% on the first $7,000.
Federal unemployment tax rate is 0.8% on the first $7,000.

Accepted Answer

The answer of Using the information provided below,prepare a journal...

Question 12

Kristi's Mentoring had the following information for the pay period ending September 30:
   Assume:
FICA-OASDI applied to the first $117,000 at a rate of 6.2%.
FICA-Medicare applied at a rate of 1.45%.
FUTA applied to the first $7,000 at a rate of 0.8%.
SUTA applied to the first $7,000 at a rate of 5.6%.
State income tax is 3.8%.
Employees contribute to their retirement fund at a rate of 5.5% of their gross earnings.
-Compute the total regular earnings.

Accepted Answer

The answer of Kristi's Mentoring had the following information for...

Question 13

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 1/2)
 $$\begin{array} { l r c r c c } 
\text { Employee Name } & \text { Pay Rate } & \text { Hours } & \text { Cumulative } & \text { Department } & \text { Federal Income } \
  & & \text { Worked } & & & \text { Tax Withheld } \
\hline\text { B. Woodard } & \$ 2,000 / \text { wk } & \text { Salaried } & \$ 98,000 & \text { Office } & \$ 779.00 \
\text { J. Thomas } & 13.00 & 51 & 40,000 & \text { Shop } & 320.00 \
\text { K. McCann } & 17.00 & 46 & 42,000 & \text { Shop } & 330.00
\end{array}$$ Assume:
FICA-OASDI is 6.2% based on a limit of $117,000.
FICA-Medicare is 1.45%.
FUTA is .8% based on a limit of $7,000.
SUTA is 5.6% based on a limit of $7,000.
State income tax is 2.8%.
-Compute the total overtime earnings.

Accepted Answer

The answer of The following data applies to the July...

Question 14

Different deposit rules apply to employers based on the amount collected and owed by that employer for payroll taxes.

Accepted Answer

A) True 
 B)False

Question 15

The employer's total FICA,SUTA,and FUTA tax is recorded as:

Accepted Answer

A) a debit to Payroll Tax Expense. 
B) a credit to Payroll Tax Expense. 
C) a credit to Accounts Payable. 
D) a debit to Payroll Tax Payable. 
A) a debit to Payroll Tax Expense. 
B) a credit to Payroll Tax Expense. 
C) a credit to Accounts Payable. 
D) a debit to Payroll Tax Payable.

Question 16

The form used for the annual federal unemployment taxes is Form 941.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements is false?

Accepted Answer

A) Payroll Tax Expense is an expense account. 
B) FICA-OASDI Payable increases on the credit side of the account. 
C) Payroll Tax Expense increases on the debit side of the account. 
D) FUTA Tax Payable increases on the debit side of the account. 
A) Payroll Tax Expense is an expense account. 
B) FICA-OASDI Payable increases on the credit side of the account. 
C) Payroll Tax Expense increases on the debit side of the account. 
D) FUTA Tax Payable increases on the debit side of the account.

Question 18

Plymouth Sharks Hockey Accessories had the following transactions involving the sale of merchandise.You are to prepare the necessary general journal entries.All sales are subject to a 6% sales tax and have a 2/10,n/30 discount terms.
 December 2 $\quad$Sold merchandise priced at $\$ 100$ to Cathy Norton on account.
December 4 $\quad$Sold merchandise priced at $\$ 125$ to a cash customer.
Decem ber 10 $\quad$Payment from Cathy Norton received.
Decem ber 16 $\quad$Cash customer returned $\$ 40$ worth of merchandise.
-A monthly depositor:

Accepted Answer

A) is an employer who only has to deposit Form 941 taxes on the 15th day of the month (or next banking day). 
B) is determined by the amount of Form 941 taxes that they paid in the look-back-period. 
C) will remain a monthly depositor,once classified,for one year at which time they will be reevaluated. 
D) All of the above answers are correct. 
A) is an employer who only has to deposit Form 941 taxes on the 15th day of the month (or next banking day). 
B) is determined by the amount of Form 941 taxes that they paid in the look-back-period. 
C) will remain a monthly depositor,once classified,for one year at which time they will be reevaluated. 
D) All of the above answers are correct.

Question 19

What liability account is reduced when the employees are paid?

Accepted Answer

A) Payroll Taxes Payable 
B) Federal Income Taxes Payable 
C) Wages and Salaries Payable 
D) Wages and Salaries Expense 
A) Payroll Taxes Payable 
B) Federal Income Taxes Payable 
C) Wages and Salaries Payable 
D) Wages and Salaries Expense

Question 20

Kristi's Mentoring had the following information for the pay period ending September 30:
   Assume:
FICA-OASDI applied to the first $117,000 at a rate of 6.2%.
FICA-Medicare applied at a rate of 1.45%.
FUTA applied to the first $7,000 at a rate of 0.8%.
SUTA applied to the first $7,000 at a rate of 5.6%.
State income tax is 3.8%.
Employees contribute to their retirement fund at a rate of 5.5% of their gross earnings.
-Compute the total federal income tax.

Accepted Answer

The answer of Kristi's Mentoring had the following information for...

Cash - Payroll Checking is a(n):

The balance in the Wages and Salaries Expense account is equal to net pay.

A company must pay Form 941 taxes electronically if:

The payment of FUTA would include:

Form SS-4 is:

Form 941 taxes include OASDI,Medicare,and federal unemployment tax.

Different deposit rules apply to employers based on the amount collected and owed by that employer for payroll taxes.

The employer's total FICA,SUTA,and FUTA tax is recorded as:

The form used for the annual federal unemployment taxes is Form 941.

Which of the following statements is false?

What liability account is reduced when the employees are paid?

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters

Exam 8: Paying,recording,and Reporting Payroll and Payroll Taxes:

Cash - Payroll Checking is a(n):

The balance in the Wages and Salaries Expense account is equal to net pay.

A company must pay Form 941 taxes electronically if:

The payment of FUTA would include:

Form SS-4 is:

Form 941 taxes include OASDI,Medicare,and federal unemployment tax.

Different deposit rules apply to employers based on the amount collected and owed by that employer for payroll taxes.

The employer's total FICA,SUTA,and FUTA tax is recorded as:

The form used for the annual federal unemployment taxes is Form 941.

Which of the following statements is false?

What liability account is reduced when the employees are paid?

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters