Exam 11: Current Liabilities and Payroll

Gross pay is the total amount of salary,wages,commissions,and bonuses earned by an employee during a pay period,after taxes or any other deductions.

Barter,Inc.sold goods for $894,500 on account.The company operates in a state that imposes a 6% sales tax.What is the amount of the sales tax payable to the state?

William Baker works for Jones Restaurant Supply all year and earns a monthly salary of $8,000.There is no overtime pay and Jones withholds income taxes at 12% of gross pay.Jones deducts $200 monthly fo the co-payment of the health insurance premium.Employees are paid on the fifth day of each month.As of October,31,William had $80,000 of cumulative earnings.Journalize the accrual of salaries expense on October 31.Omit explanations.

Which of the following deductions is paid by both the employer and employee?

When a company co-signs a note payable for another entity,a current liability must be recorded.

The journal entry for accrued interest on a note payable includes ________.

Joe,an employee of Time Travel,Inc. ,has gross salary for March of $5,200.The entire amount is under the OASDI limit of $117,000,and thus subject to FICA.He is also subject to federal income tax at a rate of 21%.His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA.The journal entry to record employer's payroll tax expense includes a credit to FICA-Medicare Taxes Payable for $150.80.(Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%. )

Which of the following liabilities is created when a company receives cash for services to be provided in the future?

Which of the following accounting principles requires that warranty expense must be estimated and recognized in the same period when the related sales revenue is recognized?

Which of the following accounts is debited when employees take paid vacation?

A $37,000,three-month,11% note payable was issued on December 1,2017.What is the amount of accrued interest on December 31,2017? (Do not round any intermediate calculations,and round your final answer to the nearest dollar. )

Federal unemployment compensation tax (FUTA)is not withheld from employees' gross earnings.

Employer FICA tax is paid by the employer and is added to the employee's earnings.

If a contingency is remote,the company does not need to record a liability and does not need to disclose it in the notes to the financial statements.

The old age,survivors,and disability insurance component of FICA tax is imposed on the entire amount of an individual employee's earnings.

At the maturity of a note payable,a borrower will pay ________.

The journal entry to record the employer's payroll tax expense will include a debit to Employee Income Taxes Payable.

A contingency was evaluated at year-end and considered to have a reasonable possibility of becoming an actual liability.If this was not reported on the balance sheet or in the notes to the financial statements,it could be considered a violation of generally accepted accounting principles.

Harrison,an employee of Saft Associates,Inc. ,has gross salary for March of $4,000.The entire amount is under the OASDI limit of $117,000 and thus subject to FICA.He is also subject to federal income tax at a rate of 18%.Harrison has a deduction of $320 for health insurance and $80 for United Way.Which of the following is included in the entry to record the disbursement of his net pay?

Maywood,Inc.signs a $17,000,8.5%,six-month note dated November 1,2017.The interest expense recorded for this note in 2017 will be ________.(Do not round any intermediate calculations,and round your final answer to the nearest dollar. )