Question 1

The individual employee earnings for all employees in a company are summarized on the W-3 form.

Accepted Answer

A) True 
 B)False

Question 2

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 net pay.________

Accepted Answer

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

Question 3

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

Accepted Answer

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

Question 4

There is no limit on the amount of taxes paid for SUTA.

Accepted Answer

A) True 
 B)False

Question 5

When a business starts,what must it obtain that identifies itself to the government?

Accepted Answer

A) State Employment Number 
B) Federal Unemployment Number 
C) Employer Identification Number 
D) A look-back period 
A) State Employment Number 
B) Federal Unemployment Number 
C) Employer Identification Number 
D) A look-back period

Question 6

What type of an account is Wages and Salaries Payable?

Accepted Answer

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

Question 7

Which of the following statements is true?

Accepted Answer

A) Payroll Tax Expense increases on the debit side of the account. 
B) FICA-Social Security Tax Payable is a liability. 
C) Payroll Tax Expense has a debit normal balance. 
D) All of these answers are correct. 
A) Payroll Tax Expense increases on the debit side of the account. 
B) FICA-Social Security Tax Payable is a liability. 
C) Payroll Tax Expense has a debit normal balance. 
D) All of these answers are correct.

Question 8

Grammy's Bakery had the following information for the pay period ending June 30: $$\begin{array} { | l | c | c | r | c | c | } 
\hline \begin{array} { c } 
\text { Employee } \
\text { Name }
\end{array} & \begin{array} { c } 
\text { Pay } \
\text { rate }
\end{array} & \begin{array} { c } 
\text { Hours } \
\text { worked }
\end{array} & \begin{array} { c } 
\text { Cumulative } \
\text { earnings }
\end{array} & \text { Department } & \begin{array} { c } 
\text { Federal } \
\text { income tax } \
\text { withheld }
\end{array} \
\hline \text { P. Ganster } & \$ 2,000 & \text { Salaried } & \$ 12,000 & \text { Kitchen } & \$ 86.00 \
\hline \text { T. Baker } & 10.00 / \mathrm { hr } & 50 & 6,500 & \text { Office } & 22.00 \
\hline
\end{array}$$ 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%.
Given the above information,what would be the amount applied to Office Salaries Expense?

Accepted Answer

A) Debit $550 
B) Credit $550 
C) Debit $500 
D) Credit $500 
A) Debit $550 
B) Credit $550 
C) Debit $500 
D) Credit $500

Question 9

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 Payroll Tax 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 Payroll Tax Payable. 
D) a debit to Payroll Tax Payable.

Question 10

Wages and Salaries Expense is:

Accepted Answer

A) equal to net pay. 
B) equal to gross pay. 
C) equal to the employer's taxes. 
D) None of the above are correct. 
A) equal to net pay. 
B) equal to gross pay. 
C) equal to the employer's taxes. 
D) None of the above are correct.

Question 11

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary).
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \begin{array} { l } 
\text { Prepaid Workers } \
\text { Comp Ins }
\end{array} & & & \
\hline
\end{array}$$

Accepted Answer

\[\begin{array} { | l | c | c | c | c |

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

The Wages and Salaries Expense account would be used to record:

Accepted Answer

A) net earnings for the office workers. 
B) a credit to the amount owed to the office workers. 
C) gross earnings for the office workers. 
D) a debit for the amount of net pay owed to the office workers. 
A) net earnings for the office workers. 
B) a credit to the amount owed to the office workers. 
C) gross earnings for the office workers. 
D) a debit for the amount of net pay owed to the office workers.

Question 14

Grammy's Bakery had the following information for the pay period ending June 30: $$\begin{array} { | l | c | c | r | c | c | } 
\hline \begin{array} { c } 
\text { Employee } \
\text { Name }
\end{array} & \begin{array} { c } 
\text { Pay } \
\text { rate }
\end{array} & \begin{array} { c } 
\text { Hours } \
\text { worked }
\end{array} & \begin{array} { c } 
\text { Cumulative } \
\text { earnings }
\end{array} & \text { Department } & \begin{array} { c } 
\text { Federal } \
\text { income tax } \
\text { withheld }
\end{array} \
\hline \text { P. Ganster } & \$ 2,000 & \text { Salaried } & \$ 12,000 & \text { Kitchen } & \$ 86.00 \
\hline \text { T. Baker } & 10.00 / \mathrm { hr } & 50 & 6,500 & \text { Office } & 22.00 \
\hline
\end{array}$$ $$\text { Assume: }$$ 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%.
Given the above information,what would be the amount applied to FUTA Payable?

Accepted Answer

A) Debit $4.00 
B) Credit $4.00 
C) Debit $20.40 
D) Credit $20.40 
A) Debit $4.00 
B) Credit $4.00 
C) Debit $20.40 
D) Credit $20.40

Question 15

Mike's Door Service's payroll data for the second week of June included the following:
 
$\begin{array}{llcc}
  \text { Employees' gross earrings } &\$ 4,540
  \

\end{array}$

Taxable earnings for FICA:
 $\begin{array}{llcc}
  \text { OASDI } & 2,500 \
 \text {  Medicare} &4,500\
\end{array}$

Taxable earnings for state unemployment taxes $2,000
Assume the following tax rates:
 $\begin{array}{llcc}
  \text { FIEA-OASDI } &6.2\%  \
 \text { FICA-Medicare } &1.45\%\
 \text { State wnemployment } &1.5\%\

\end{array}$

Required: Prepare the payroll tax expense entry.

Accepted Answer

None

Question 16

The 940 is filed annually.

Accepted Answer

A) True 
 B)False

Question 17

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary).
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \text { FUTA Payable } & & & & \
\hline
\end{array}$$

Accepted Answer

\[\begin{array} { | l | l | l | l | l |

Question 18

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-OASDI.________

Accepted Answer

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

Question 19

The W-3 is filed along with copies of the W-2 forms.

Accepted Answer

A) True 
 B)False

Question 20

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary).
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \text { Payroll Tax } & & & & \
\text { Expense } & & & & \
\hline
\end{array}$$

Accepted Answer

\[\begin{array} { | l | c | c | c | c |

The individual employee earnings for all employees in a company are summarized on the W-3 form.

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

There is no limit on the amount of taxes paid for SUTA.

When a business starts,what must it obtain that identifies itself to the government?

What type of an account is Wages and Salaries Payable?

Which of the following statements is true?

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

Wages and Salaries Expense is:

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

The Wages and Salaries Expense account would be used to record:

The 940 is filed annually.

The W-3 is filed along with copies of the W-2 forms.

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

The individual employee earnings for all employees in a company are summarized on the W-3 form.

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

There is no limit on the amount of taxes paid for SUTA.

When a business starts,what must it obtain that identifies itself to the government?

What type of an account is Wages and Salaries Payable?

Which of the following statements is true?

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

Wages and Salaries Expense is:

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

The Wages and Salaries Expense account would be used to record:

The 940 is filed annually.

The W-3 is filed along with copies of the W-2 forms.

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