Question 1

The detailed record indicating the data for each employee for each payroll period and the cumulative total earnings for each employee is called the

Accepted Answer

A)  payroll register 
B)  payroll check 
C)  employee's earnings record 
D)  employer's earnings record 
A)  payroll register 
B)  payroll check 
C)  employee's earnings record 
D)  employer's earnings record

Question 2

Thomas Martin receives an hourly wage rate of $40, with time-and-a-half pay for all hours worked in excess of 40 hours during a week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $350; social security tax rate, 6.0%; and Medicare tax rate, 1.5%. What is the gross pay for Martin?

Accepted Answer

A)  $449 
B)  $1,730 
C)  $2,080 
D)  $1,581 
A)  $449 
B)  $1,730 
C)  $2,080 
D)  $1,581

Question 3

On May 18, Rodriguez Co. issued an $84,000, 6%, 120-day note payable on an overdue account payable to Wilson Company. Assume that the fiscal year of Rodriguez ends on June 30. Which of the following relationships is true?

Accepted Answer

A)  Rodriguez is the creditor and credits Accounts Receivable. 
B)  Wilson is the creditor and debits Accounts Receivable. 
C)  Wilson is the borrower and credits Accounts Payable. 
D)  Rodriguez is the borrower and debits Accounts Payable. 
A)  Rodriguez is the creditor and credits Accounts Receivable. 
B)  Wilson is the creditor and debits Accounts Receivable. 
C)  Wilson is the borrower and credits Accounts Payable. 
D)  Rodriguez is the borrower and debits Accounts Payable.

Question 4

The cost of a product warranty should be included as an expense in the

Accepted Answer

A)  period the cash is collected for a product sold on account 
B)  future period when the cost of repairing the product is paid 
C)  period of the sale of the product 
D)  future period when the product is repaired or replaced 
A)  period the cash is collected for a product sold on account 
B)  future period when the cost of repairing the product is paid 
C)  period of the sale of the product 
D)  future period when the product is repaired or replaced

Question 5

Payroll entries are made with data from the

Accepted Answer

A)  wage and tax statement 
B)  employee's earnings record 
C)  employer's quarterly federal tax return 
D)  payroll register 
A)  wage and tax statement 
B)  employee's earnings record 
C)  employer's quarterly federal tax return 
D)  payroll register

Question 6

Journalize the following transactions for Riley Corporation:Dec. 31The accrued product warranty expense for the year is estimated to be 2.5% of sales. Sales for the year totaled $8,850,000.31The accrued vacation pay for the year is estimated to be $75,000.31Paid First Insurance Co. $55,000 as fund trustee for the pension plan. The annual pension cost is $87,000.

Accepted Answer

The answer of Journalize the following transactions for Riley Corporation:Dec....

Question 7

The journal entry a company uses to record pension rights that have not been funded for its salaried employees at the end of the year is

Accepted Answer

A)  debit Salaries Expense; credit Cash 
B)  debit Pension Expense; credit Unfunded Pension Liability 
C)  debit Pension Expense; credit Unfunded Pension Liability and Cash 
D)  debit Pension Expense; credit Cash 
A)  debit Salaries Expense; credit Cash 
B)  debit Pension Expense; credit Unfunded Pension Liability 
C)  debit Pension Expense; credit Unfunded Pension Liability and Cash 
D)  debit Pension Expense; credit Cash

Question 8

The following information is for employee Ella Dodd for the week ended March 15.
Total hours worked: 48
Rate: $15 per hour, with double time for all hours in excess of 40
Federal income tax withheld: $200
United Fund deduction: $50
Cumulative earnings prior to current week: $6,400
Tax rates:Social security: 6.0% on maximum earnings of $120,000
Medicare tax: 1.5% on all earnings
State unemployment: 3.4% on maximum earnings of $7,000; on employer
Federal unemployment: 0.8% on maximum earnings of $7,000; on employer
(a)Determine  (1) total earnings,  (2) total deductions, and  (3) cash paid.
(b)Determine each of the employer's payroll taxes related to the earnings of Ella Dodd for the week ended March 15.

Accepted Answer

The answer of The following information is for employee Ella...

Question 9

Which of the following would be used to compute the federal income taxes to be withheld from an employee's earnings?

Accepted Answer

A)  FICA tax rate 
B)  wage and tax statement 
C)  FUTA tax rate 
D)  wage bracket and withholding table 
A)  FICA tax rate 
B)  wage and tax statement 
C)  FUTA tax rate 
D)  wage bracket and withholding table

Question 10

Payroll taxes are based on the employee's net pay.

Accepted Answer

A) True 
 B)False

Question 11

Payroll taxes levied against employees become liabilities

Accepted Answer

A)  the first of the following month 
B)  when the payroll is paid to employees 
C)  when data are entered in a payroll register 
D)  at the end of an accounting period 
A)  the first of the following month 
B)  when the payroll is paid to employees 
C)  when data are entered in a payroll register 
D)  at the end of an accounting period

Question 12

Taylor Bank lends Guarantee Company $150,000 on January 1. Guarantee Company signs a $150,000, 8%, nine-month note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is​

Accepted Answer

The answer of Taylor Bank lends Guarantee Company $150,000 on...

Question 13

Most employers are required to withhold federal unemployment taxes from employee earnings.

Accepted Answer

A) True 
 B)False

Question 14

Journalize the following entries on the books of Winston Co. for August 1, September 1, and November 30. 
(Assume a 360-day year is used for interest calculations.)
Aug. 1 Winston Co. purchased merchandise for $75,000 on account from Bagley Co., terms n/30.
Sept. 1 Winston Co. issued a 90-day, 6% note for $75,000 on account. 
Nov. 30Winston Co. paid the amount due.

Accepted Answer

The answer of Journalize the following entries on the books...

Question 15

FICA tax is a payroll tax that is paid only by employers.

Accepted Answer

A) True 
 B)False

Question 16

Mobile Sales has five sales employees that receive weekly paychecks. Each earns $11.50 per hour and each has worked 40 hours in the pay period. Each employee pays 12% of gross in federal income tax, 3% in state income tax, 6.0% of gross in social security tax, 1.5% of gross in Medicare tax, and 0.5% in state disability insurance. Journalize the pay period ending January 19 that will be paid to the employees January 26.

Accepted Answer

The answer of Mobile Sales has five sales employees that...

Question 17

Young Company has the following assets and liabilities:?? $\begin{array}{|l|r|}
\hline {\text { Assets }} & \
\hline \text { Cash } & \$ 35,000 \
\hline \text { Accounts receivable } & 15,000 \
\hline\text { Inventory } & 30,000 \
\hline  \text { Equipment }& 50,000 \
\hline  & \
\hline{\text { Liabilities }}\
\hline \text { Current portion of long-term debt } & \$ 10,000 \
\hline \text { Accounts payable } & 2,000 \
\hline \text { Long-term debt } & 25,000 \
\hline
\end{array}$ Determine the quick ratio (rounded to one decimal point).

Accepted Answer

A)  6.7 
B)  13.0 
C)  4.2 
D)  3.5 
A)  6.7 
B)  13.0 
C)  4.2 
D)  3.5

Question 18

Lee Company has the following information for the pay period of December 15-31:?? $$\begin{array} { l r l r } 
\text { Gross payroll } & \$ 16,000 & \text { Federal income tax withheld } & \$ 4,000 \
\text { Social security rate } & 6.0 \% & \text { Federal unemployment tax rate } & 0.8 \% \
\text { Medicare rate } & 1.5 \% & \text { State unemployment tax rate } & 5.4 \%
\end{array}$$ Assuming no employees are subject to ceilings for taxes on their earnings, Salaries Payable would be recorded for

Accepted Answer

A)  $16,000 
B)  $9,808 
C)  $10,800 
D)  $11,040 
A)  $16,000 
B)  $9,808 
C)  $10,800 
D)  $11,040

Question 19

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:
​
​
 $$\begin{array} { l r } 
\text { Salaries } & \$ 12,000 \
\text { FICA taxes withheld } & 900 \
\text { Income taxes withheld } & 2,500 \
\text { Medical insurance deductions } & 450 \
\text { Federal unemployment taxes } & 32 \
\text { State unemployment taxes } & 216
\end{array}$$ ​
-The journal entry to record the monthly payroll on April 30 would include a

Accepted Answer

A)  credit to Salaries Payable for $8,150 
B)  debit to Salaries Expense for $7,902 
C)  debit to Salaries Payable for $8,150 
D)  debit to Salaries Payable for $7,902 
A)  credit to Salaries Payable for $8,150 
B)  debit to Salaries Expense for $7,902 
C)  debit to Salaries Payable for $8,150 
D)  debit to Salaries Payable for $7,902

Question 20

An employee earns $40 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 60 hours during the week and that the gross pay prior to the current week totaled $58,000. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and the federal income tax to be withheld was $614.​
(a) Determine the gross pay for the week.
(b) Determine the net pay for the week.

Accepted Answer

The answer of An employee earns $40 per hour and...

The detailed record indicating the data for each employee for each payroll period and the cumulative total earnings for each employee is called the

On May 18, Rodriguez Co. issued an $84,000, 6%, 120-day note payable on an overdue account payable to Wilson Company. Assume that the fiscal year of Rodriguez ends on June 30. Which of the following relationships is true?

The cost of a product warranty should be included as an expense in the

Payroll entries are made with data from the

The journal entry a company uses to record pension rights that have not been funded for its salaried employees at the end of the year is

Which of the following would be used to compute the federal income taxes to be withheld from an employee's earnings?

Payroll taxes are based on the employee's net pay.

Payroll taxes levied against employees become liabilities

Taylor Bank lends Guarantee Company $150,000 on January 1. Guarantee Company signs a $150,000, 8%, nine-month note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is

Most employers are required to withhold federal unemployment taxes from employee earnings.

FICA tax is a payroll tax that is paid only by employers.

Young Company has the following assets and liabilities:?? Assets Cash \ 35,000 Accounts receivable 15,000 Inventory 30,000 Equipment 50,000 Liabilities Current portion of long-term debt \ 10,000 Accounts payable 2,000 Long-term debt 25,000 Determine the quick ratio (rounded to one decimal point).

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Cost-Volume-Profit Analysis

Evaluating Variances From Standard Costs

Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Filters

Exam 11: Current Liabilities and Payroll

The detailed record indicating the data for each employee for each payroll period and the cumulative total earnings for each employee is called the

On May 18, Rodriguez Co. issued an $84,000, 6%, 120-day note payable on an overdue account payable to Wilson Company. Assume that the fiscal year of Rodriguez ends on June 30. Which of the following relationships is true?

The cost of a product warranty should be included as an expense in the

Payroll entries are made with data from the

The journal entry a company uses to record pension rights that have not been funded for its salaried employees at the end of the year is

Which of the following would be used to compute the federal income taxes to be withheld from an employee's earnings?

Payroll taxes are based on the employee's net pay.

Payroll taxes levied against employees become liabilities

Taylor Bank lends Guarantee Company $150,000 on January 1. Guarantee Company signs a $150,000, 8%, nine-month note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is​

Most employers are required to withhold federal unemployment taxes from employee earnings.

FICA tax is a payroll tax that is paid only by employers.

Young Company has the following assets and liabilities:?? Assets Cash \ 35,000 Accounts receivable 15,000 Inventory 30,000 Equipment 50,000 Liabilities Current portion of long-term debt \ 10,000 Accounts payable 2,000 Long-term debt 25,000 Determine the quick ratio (rounded to one decimal point).

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Cost-Volume-Profit Analysis

Evaluating Variances From Standard Costs

Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Filters

Taylor Bank lends Guarantee Company $150,000 on January 1. Guarantee Company signs a $150,000, 8%, nine-month note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is