Question 1

Form 941 is completed annually.

Accepted Answer

A) True 
 B)False

Question 2

FUTA taxes are paid:

Accepted Answer

A) by the end of January of the following year if the amount owed is less than $500. 
B) by the end of the month following the end of the calendar quarter if the amount owed is more than $500. 
C) at the same time as the Form 941 taxes. 
D) Both A and B are correct. 
A) by the end of January of the following year if the amount owed is less than $500. 
B) by the end of the month following the end of the calendar quarter if the amount owed is more than $500. 
C) at the same time as the Form 941 taxes. 
D) Both A and B are correct.

Question 3

Kristi's Mentoring had the following information for the pay period ending September 30:
$\begin{array}{c}
\begin{array}{c}
\text {Employee Name}\
\
\text {T. Hill}\
\text {V. Chandler}\
\text {M. Hill}
\end{array}
\begin{array}{c}
\text {Pay }\
\text {rate}\
\$ 4,500 \
12.00 \
13.00
\end{array}
\begin{array}{c}
\text {Hours}\
\text {worked}\
\text {Salaried}\
48\
43\
\end{array}
\begin{array}{c}
\text { Cumulative}\
\text { earnings } \
\$ 103,000 \
51,000 \
5,200
\end{array}
\begin{array}{c}
\text {Department}\
\
\text {Office}\
\text {Tutor}\
\text {Tutor}
\end{array}
\begin{array}{c}
\text {Federal income}\
\text {tax withheld}\
\$ 2,000.00 \
 215.00 \
 208.00 
\end{array}
\end{array}$

Assume:	
FICA-OASDI applied to the first $106,800 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-Medicare.________

Accepted Answer

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

Question 4

The W-2 is the Wage and Tax Statement.

Accepted Answer

A) True 
 B)False

Question 5

Kristi's Mentoring had the following information for the pay period ending September 30:
$\begin{array}{c}
\begin{array}{c}
\text {Employee Name}\
\
\text {T. Hill}\
\text {V. Chandler}\
\text {M. Hill}
\end{array}
\begin{array}{c}
\text {Pay }\
\text {rate}\
\$ 4,500 \
12.00 \
13.00
\end{array}
\begin{array}{c}
\text {Hours}\
\text {worked}\
\text {Salaried}\
48\
43\
\end{array}
\begin{array}{c}
\text { Cumulative}\
\text { earnings } \
\$ 103,000 \
51,000 \
5,200
\end{array}
\begin{array}{c}
\text {Department}\
\
\text {Office}\
\text {Tutor}\
\text {Tutor}
\end{array}
\begin{array}{c}
\text {Federal income}\
\text {tax withheld}\
\$ 2,000.00 \
 215.00 \
 208.00 
\end{array}
\end{array}$

Assume:	
FICA-OASDI applied to the first $106,800 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.
-Prepare the general journal entry to record the payment of the retirement fund withholdings.
___________________________________________ _________ _________
___________________________________________ _________ _________
___________________________________________ _________ _________
___________________________________________ _________ _________

Accepted Answer

None

Question 6

The entry to record the payment of taxes withheld from employees and FICA taxes would be to:

Accepted Answer

A) credit Cash; debit FICA-Social Security Payable,FICA-Medicare Payable,and Federal Income Tax Payable. 
B) debit Cash; credit FICA-Social Security Payable,FICA-Medicare Payable,and Federal Income Tax Payable. 
C) credit Cash; credit FICA-Social Security Payable,FICA-Medicare Payable,and Federal Income Tax Payable. 
D) None of these answers are correct. 
A) credit Cash; debit FICA-Social Security Payable,FICA-Medicare Payable,and Federal Income Tax Payable. 
B) debit Cash; credit FICA-Social Security Payable,FICA-Medicare Payable,and Federal Income Tax Payable. 
C) credit Cash; credit FICA-Social Security Payable,FICA-Medicare Payable,and Federal Income Tax Payable. 
D) None of these answers are correct.

Question 7

What type of account is Payroll Tax Expense?

Accepted Answer

A) Asset 
B) Liability 
C) Revenue 
D) Expense 
A) Asset 
B) Liability 
C) Revenue 
D) Expense

Question 8

Kristi's Mentoring had the following information for the pay period ending September 30:
$\begin{array}{c}
\begin{array}{c}
\text {Employee Name}\
\
\text {T. Hill}\
\text {V. Chandler}\
\text {M. Hill}
\end{array}
\begin{array}{c}
\text {Pay }\
\text {rate}\
\$ 4,500 \
12.00 \
13.00
\end{array}
\begin{array}{c}
\text {Hours}\
\text {worked}\
\text {Salaried}\
48\
43\
\end{array}
\begin{array}{c}
\text { Cumulative}\
\text { earnings } \
\$ 103,000 \
51,000 \
5,200
\end{array}
\begin{array}{c}
\text {Department}\
\
\text {Office}\
\text {Tutor}\
\text {Tutor}
\end{array}
\begin{array}{c}
\text {Federal income}\
\text {tax withheld}\
\$ 2,000.00 \
 215.00 \
 208.00 
\end{array}
\end{array}$

Assume:	
FICA-OASDI applied to the first $106,800 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.
-Prepare the general journal entry to record the payroll.
___________________________________________ _________ _________
___________________________________________ _________ _________
___________________________________________ _________ _________
___________________________________________ _________ _________
___________________________________________ _________ _________
___________________________________________ _________ _________
___________________________________________ _________ _________
___________________________________________ _________ _________
___________________________________________ _________ _________
___________________________________________ _________ _________

Accepted Answer

\[\begin{array} { l l l } 
\text { Offic

Question 9

Great Lakes Tutoring had the following payroll information on February 28: $$\begin{array} { | c | c | c | } 
\hline \text { Employee } & \text { Gross Pay } & \begin{array} { c } 
\text { Cumulative Earnings } \
\text { Prior to this Payroll }
\end{array} \
\hline \text { R Hill } & \$ 4,000 & \$ 4,000 \
\hline
\end{array}$$ Assume:
FICA tax rates are: OASDI 6.2% on a limit of $106,800 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
Using the information above,the journal entry to record the payroll tax expense for Great Lakes Tutoring would include:

Accepted Answer

A) a debit to Payroll Tax Expense in the amount of $390. 
B) a credit to FUTA Payable for $24. 
C) a credit to SUTA Payable for $60. 
D) All of the above are correct. 
A) a debit to Payroll Tax Expense in the amount of $390. 
B) a credit to FUTA Payable for $24. 
C) a credit to SUTA Payable for $60. 
D) All of the above are correct.

Question 10

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 11

Businesses will make their payroll tax deposits based on payroll taxes collected.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Why would a company use a separate payroll cash account?

Accepted Answer

A) Provides for better internal control 
B) Ease of account reconciliation 
C) Determine whether or not the employee has cashed their check 
D) All of the above are correct. 
A) Provides for better internal control 
B) Ease of account reconciliation 
C) Determine whether or not the employee has cashed their check 
D) All of the above are correct.

Question 14

The employer pays the same amount as the employee for Federal Unemployment taxes.

Accepted Answer

A) True 
 B)False

Question 15

How often is a 940 filed?

Accepted Answer

A) Monthly 
B) Annually 
C) Weekly 
D) Quarterly 
A) Monthly 
B) Annually 
C) Weekly 
D) Quarterly

Question 16

Premiums for worker's compensation insurance may be adjusted based on actual payroll amounts at the end of the year.

Accepted Answer

A) True 
 B)False

Question 17

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 $\frac{1}{2}$)
$\begin{array}{c}
\begin{array}{c}
 \text {Employee Name}\
\
 \text {B. Woodard}\
 \text {J. Thomas}\
 \text {K. McCann}
\end{array}
\begin{array}{c}
 \text {Pay Rate}\
\
\$ 2,000 / \mathrm{wk} \
13.00 \
17.00
\end{array}
\begin{array}{c}
 \text {Hours}\
 \text {Worked}\
 \text {Salaried}\
51\
46
\end{array}
\begin{array}{c}
\text {Cumulative}\
\
\$ 98,000 \
40,000 \
42,000
\end{array}
\begin{array}{c}
\text {Department}\
\
\text {Office}\
\text {Shop}\
\text {Shop}
\end{array}
\begin{array}{c}
\text { Federal Income}\
\text { Tax Withheld } \
\$ 779.00 \
320.00 \
330.00
\end{array}
\end{array}$
Assume: 
FICA-OASDI is 6.2% based on a limit of $106,800
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%
-Prepare the general journal entry to record the employer's payroll tax expense.
___________________________________________ _________ _________
___________________________________________ _________ _________
___________________________________________ _________ _________
___________________________________________ _________ _________

Accepted Answer

None

Question 18

The employer's annual Federal Unemployment Tax Return is:

Accepted Answer

A) Form 940. 
B) Form 941. 
C) Form W-4. 
D) Form 8109. 
A) Form 940. 
B) Form 941. 
C) Form W-4. 
D) Form 8109.

Question 19

If an employer owes less than $2,500 for FICA (OASDI and Medicare)and FIT,they can submit:

Accepted Answer

A) Form 944-Employer's Annual Federal Tax Return. 
B) Form 8109-Federal Tax Deposit Coupon. 
C) Form 940-Employer's Annual Federal Unemployment Tax Return. 
D) Form W-2-Wage and Tax Statement. 
A) Form 944-Employer's Annual Federal Tax Return. 
B) Form 8109-Federal Tax Deposit Coupon. 
C) Form 940-Employer's Annual Federal Unemployment Tax Return. 
D) Form W-2-Wage and Tax Statement.

Question 20

The correct journal entry to record the payment of SUTA is:

Accepted Answer

A) debit SUTA Expense; credit Cash. 
B) debit Cash; credit SUTA Expense. 
C) debit Cash; credit SUTA Payable. 
D) debit SUTA Payable; credit Cash. 
A) debit SUTA Expense; credit Cash. 
B) debit Cash; credit SUTA Expense. 
C) debit Cash; credit SUTA Payable. 
D) debit SUTA Payable; credit Cash.

Form 941 is completed annually.

FUTA taxes are paid:

The W-2 is the Wage and Tax Statement.

The entry to record the payment of taxes withheld from employees and FICA taxes would be to:

What type of account is Payroll Tax Expense?

Form SS-4 is:

Businesses will make their payroll tax deposits based on payroll taxes collected.

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

Why would a company use a separate payroll cash account?

The employer pays the same amount as the employee for Federal Unemployment taxes.

How often is a 940 filed?

Premiums for worker's compensation insurance may be adjusted based on actual payroll amounts at the end of the year.

The employer's annual Federal Unemployment Tax Return is:

If an employer owes less than $2,500 for FICA (OASDI and Medicare)and FIT,they can submit:

The correct journal entry to record the payment of SUTA is:

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, and Retained Earnings

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: The Conclusion of the Payroll Process

Form 941 is completed annually.

FUTA taxes are paid:

The W-2 is the Wage and Tax Statement.

The entry to record the payment of taxes withheld from employees and FICA taxes would be to:

What type of account is Payroll Tax Expense?

Form SS-4 is:

Businesses will make their payroll tax deposits based on payroll taxes collected.

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

Why would a company use a separate payroll cash account?

The employer pays the same amount as the employee for Federal Unemployment taxes.

How often is a 940 filed?

Premiums for worker's compensation insurance may be adjusted based on actual payroll amounts at the end of the year.

The employer's annual Federal Unemployment Tax Return is:

If an employer owes less than $2,500 for FICA (OASDI and Medicare)and FIT,they can submit:

The correct journal entry to record the payment of SUTA is:

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, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters