Exam 11: Current Liabilities and Payroll

An aid in internal control over payrolls that indicates employee attendance is the

The journal entry used to record the issuance of an interest-bearing note for the purpose of borrowing funds for the business is

Assuming a 360-day year, the interest charged by the bank, at the rate of 6%, on a 90-day, discounted note payable of $100,000 is

Form W-2 is called the Wage and Tax Statement.

The payroll register is a multicolumn form used to assemble the payroll-related data for all employees.

Federal income taxes are subject to a maximum amount per employee per year.

The current assets and current liabilities for Kolbie Company and Newton Company are as follows:​ *These represent prepaid expenses and other non-quick current assets. (a) Determine the quick ratio for both companies. Round to two decimal places. (b) Interpret the quick ratio difference between the two companies.​

Obligations that may arise from past transactions only if certain events occur in the future are contingent liabilities.

The employee's earnings record would contain which of the following data that the payroll register would probably not contain?

Which of the following taxes are employers required to withhold from employees?

Use this information for Magnum Company to answer the following questions. ​ The following totals for the month of April were taken from the payroll register of Magnum Company: ​ ​ Salaries \ 12,000 FICA taxes withheld 900 Income taxes withheld 2,500 Medical insurance deductions 450 Federal unemployment taxes 32 State unemployment taxes 216 ​ -The entry to record the accrual of the employer's payroll taxes would include a

Which of the following is not a determinant in calculating federal income taxes withheld from an individual's pay?

A defined contribution plan promises employees a fixed annual pension benefit.

Core Company had the following assets and liabilities as of December 31:​​ Assets Cash \ 58,000 Accounts receivable 25,000 Inventory 20,000 Equipment 50,000 Liabilities Current portion of long-term debt \ 20,000 Accounts payable 12,000 Long-term debt 25,000 Calculate the current ratio, working capital, and quick ratio.​

Below are two independent sets of transactions for Welcott Company:​ (a) Welcott provides its employees with varying amounts of vacation per year, depending on the length of employment. The estimated amount of the current year's vacation pay is $78,000. Journalize the adjusting entry required on January 31, the end of the first month of the year, to record the accrued vacation pay.​ (b) Welcott maintains a defined contribution pension plan for its employees. The plan requires quarterly installments to be paid to the funding agent, Northern Trust, by the fifteenth of the month following the end of each quarter. Assuming that the pension cost is $119,600 for the quarter ended December 31, journalize entries to record (1) the accrued pension liability on December 31 and (2) the payment to the funding agent on January 15.

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once. -Probable likelihood of a liability but cannot be estimated

Perez Company has the following information for the pay period of January 15-31:​ Gross payroll \ 20,000 Federal income tax withhel d \ 2,500 Social security rate 6.0\% Federal unemployment tax rate 0.8\% Medicare rate 1.5\% State unemployment tax rate 5.4\% Assuming no employees are subject to ceilings for their earnings, calculate salaries payable and payroll tax expense.​

According to a summary of the payroll of Sinclair Company, $505,000 was subject to the 6.0% social security tax and $545,000 was subject to the 1.5% Medicare tax. Also, $10,000 was subject to state and federal unemployment taxes. (a)Calculate the employer's payroll taxes using the following rates: State unemployment, 4.2%; Federal unemployment, 0.8%. (b)Journalize the entry to record the accrual of the employer's payroll taxes.

FICA tax becomes a liability to the federal government at the time an employee's payroll is prepared.

On June 8, Smith Technologies issued a $75,000, 6%, 140-day note payable to Johnson Company. What is the due date of the note?