Exam 11: Current Liabilities and Payroll

Zennia Company provides its employees with varying amount of vacation per year, depending on the length of employment. The estimated amount of the current year's vacation cost is $135,000. The journal entry to record the adjusting entry required on December 31, the end of the current year, to record the current month's accrued vacation pay is

A business borrowed $40,000 on March 1 of the current year by signing a 60-day, 9% interest bearing note. Assuming a 360-day year, when the note is paid on April 30, the entry to record the payment should include a

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

The journal entry a company uses to record the issuance of a note for the purpose of converting an existing account payable would be

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

On June 8, Alton Co. issued an $80,000, 6%, 120-day note payable on an overdue account payable to Seller Co. Assume that the fiscal year of Alton Co. ends June 30. Which of the following relationships is true?

All long-term liabilities eventually become current liabilities.

Which of the following will have no effect on an employee's take-home pay?

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

The journal entry a company uses to record the payment of a discounted note is

The following totals for the month of June were taken from the payroll register of Young Company: The entry to record the accrual of employer's payroll taxes would include a

Quick assets include

Amounts withheld from each employee for Social Security and Medicare varies by state.

The journal entry a company uses to record the issuance of a discounted note for the purpose of borrowing funds for the business is

Payroll taxes only include social security taxes and federal unemployment and state unemployment taxes.

List five internal controls that relate directly to payroll.

Use the following information to answer the following questions. The following totals for the month of April were taken from the payroll register of Magnum Company. The entry to record accrual of employer's payroll taxes would include a

Prior to the last weekly payroll period of the calendar year, the cumulative earnings of employees A and B are $99,350 and $91,000 respectively. Their earnings for the last completed payroll period of the year are $850 each. The maximum amount of earnings subject to social security tax at 6% is $100,000. All earnings are subject to Medicare tax of 1.5%. Assuming that the payroll will be paid on December 29, what will be the employer's total FICA tax for this payroll period on the two salary amounts of $850 each?

In order to be a recorded contingent liability, the liability must be possible and easily estimated.

An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $120; cumulative earnings for the year prior to this week, $24,500; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, .8% on the first $7,000. What is the net amount to be paid to the employee?