Question 1

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

Accepted Answer

A)  debit Cash and Interest Expense; credit Notes Payable 
B)  debit Cash and Interest Payable; credit Notes Payable 
C)  debit Accounts Payable; credit Notes Payable 
D)  debit Notes Payable; credit Cash 
A)  debit Cash and Interest Expense; credit Notes Payable 
B)  debit Cash and Interest Payable; credit Notes Payable 
C)  debit Accounts Payable; credit Notes Payable 
D)  debit Notes Payable; credit Cash

Question 2

Assuming a 360-day year, when a $40,000, 90-day, 9% interest-bearing note payable matures, total payment will amount to:

Accepted Answer

A)  $40,900 
B)  $43,600 
C)  $900 
D)  $3,600 
A)  $40,900 
B)  $43,600 
C)  $900 
D)  $3,600

Question 3

The summary of the payroll for the monthly pay period ending July 15 indicated the following:
 $\begin{array}{ll}
\$ 125,000 & \text { Saless salaries } \
32,300 & \text { Federal income tax withheld } \
35,000 & \text { Office salaries } \
7,370 & \text { Medical insurance withheld } \
10,200 & \text { Social security tax withheld } \
2,550 & \text { Medicare tax withheld }
\end{array}$ Journalize the entries to record (a) the payroll and (b) the employer's payroll tax expense for the month. The state unemployment tax rate is 3.1%, and the federal unemployment tax rate is 0.8%. Only $25,000 of salaries are subject to unemployment taxes.

Accepted Answer

The answer of The summary of the payroll for the...

Question 4

Which of the following forms is typically given to employees at the end of the calendar year so that employees can file their individual income tax forms?

Accepted Answer

A)  Employment Withholding Allowance Certificate (W-4) 
B)  Wage and Tax Statement (Form W-2) 
C)  Employer's Quarterly Federal Tax Return (Form 941) 
D)  401k plans 
A)  Employment Withholding Allowance Certificate (W-4) 
B)  Wage and Tax Statement (Form W-2) 
C)  Employer's Quarterly Federal Tax Return (Form 941) 
D)  401k plans

Question 5

The payroll register of Seaside Architecture Company indicates $870 of Social Security and $217 of Medicare tax withheld on total salaries of $14,500 for the period. Assume earnings subject to state and federal unemployment compensation taxes are $5,250. at the federal rate of 0.8% and state rate of 5.4%. Provide the journal entry to record the payroll tax expense for the period.

Accepted Answer

The answer of The payroll register of Seaside Architecture Company...

Question 6

A business borrowed $40,000 on March 1 of the current year by signing a 30-day, 9% interest bearing note. When the note is paid on March 31, the entry to record the payment should include a

Accepted Answer

A)  debit to Interest Payable $300 
B)  debit to Interest Expense $300 
C)  credit to Cash for $40,000 
D)  credit to Cash for $43,600 
A)  debit to Interest Payable $300 
B)  debit to Interest Expense $300 
C)  credit to Cash for $40,000 
D)  credit to Cash for $43,600

Question 7

List five internal controls that relate directly to payroll.

Accepted Answer

All of the cash payment controls.
Proper

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% on maximum earnings of $100,000. 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

Accepted Answer

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

Question 9

An employee receives an hourly rate of $25, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 46 federal income tax withheld, $350; cumulative earnings for year prior to current week, $99,700; social security tax rate, 6.0% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings. What is the net amount to be paid the employee?

Accepted Answer

A)  $875.00 
B)  $838.62 
C)  $857.00 
D)  $1,133.14 
A)  $875.00 
B)  $838.62 
C)  $857.00 
D)  $1,133.14

Question 10

Proper payroll accounting methods are important for a business for all the reasons below except

Accepted Answer

A)  good employee morale requires timely and accurate payroll payments. 
B)  payroll is subject to various federal and state regulations. 
C)  to help a business with cash flow problems by delayed payments of payroll taxes to federal and state agencies. 
D)  payroll and related payroll taxes have a significant effect on the net income of most businesses. 
A)  good employee morale requires timely and accurate payroll payments. 
B)  payroll is subject to various federal and state regulations. 
C)  to help a business with cash flow problems by delayed payments of payroll taxes to federal and state agencies. 
D)  payroll and related payroll taxes have a significant effect on the net income of most businesses.

Question 11

The discount on a note payable is charged to an account that has a normal credit balance.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following are included in the employer's payroll taxes?

Accepted Answer

A)  SUTA taxes 
B)  FUTA taxes 
C)  FICA taxes 
D)  all of the above 
A)  SUTA taxes 
B)  FUTA taxes 
C)  FICA taxes 
D)  all of the above

Question 13

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?

Accepted Answer

A)  Alton is the creditor and credits Accounts Receivable 
B)  Seller is the creditor and debits Accounts Receivable 
C)  Seller is the borrower and credits Accounts Payable 
D)  Alton is the borrower and debits Accounts Payable 
A)  Alton is the creditor and credits Accounts Receivable 
B)  Seller is the creditor and debits Accounts Receivable 
C)  Seller is the borrower and credits Accounts Payable 
D)  Alton is the borrower and debits Accounts Payable

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Darius Company has the following information for the pay period of January 15 - 31, 20xx.
   Assuming no employees are subject to ceilings for their earnings, calculate Salaries Payable and Employer Payroll Taxes Payable.

Accepted Answer

Salaries Payable:
Gross payroll $20,000

Question 16

The employee earnings record would contain which column that the payroll register would probably not contain?

Accepted Answer

A)  deductions 
B)  payment 
C)  earnings 
D)  cumulative earnings 
A)  deductions 
B)  payment 
C)  earnings 
D)  cumulative earnings

Question 17

The journal entry a company uses to record the issuance of an interest-bearing note for the purpose of borrowing funds for the business is

Accepted Answer

A)  debit Accounts Payable; credit Notes Payable 
B)  debit Cash; credit Notes Payable 
C)  debit Notes Payable; credit Cash 
D)  debit Cash and Interest Expense; credit Notes Payable 
A)  debit Accounts Payable; credit Notes Payable 
B)  debit Cash; credit Notes Payable 
C)  debit Notes Payable; credit Cash 
D)  debit Cash and Interest Expense; credit Notes Payable

Question 18

Each year there is a ceiling for the amount that is subject to all of the following except

Accepted Answer

A)  social security tax 
B)  federal income tax 
C)  federal unemployment tax 
D)  state unemployment tax 
A)  social security tax 
B)  federal income tax 
C)  federal unemployment tax 
D)  state unemployment tax

Question 19

Excel Products Inc. pays its employees semimonthly. The summary of the payroll for December 31, 2012 indicated the following:
   For the year ended 2012, $40,000 of the December 31 payroll is subject to social security tax of 6%; $120,000 is subject to Medicare tax of 1.5%; $10,000 is subject to state unemployment tax of 4.3% and federal unemployment tax of 0.8%. As of January 1, 2013 all of the $120,000 is subject to all payroll taxes. Present the journal entries for payroll tax expense if the employees are paid (a) December 31 of the current year, (b) January 2 of the following year.

Accepted Answer

The answer of Excel Products Inc. pays its employees semimonthly....

Question 20

A pension plan which promises employees a fixed annual pension benefit, based on years of service and compensation, is called a(n)

Accepted Answer

A)  defined contribution plan 
B)  defined benefit plan 
C)  unfunded plan 
D)  funded plan 
A)  defined contribution plan 
B)  defined benefit plan 
C)  unfunded plan 
D)  funded plan

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

Assuming a 360-day year, when a $40,000, 90-day, 9% interest-bearing note payable matures, total payment will amount to:

Which of the following forms is typically given to employees at the end of the calendar year so that employees can file their individual income tax forms?

A business borrowed $40,000 on March 1 of the current year by signing a 30-day, 9% interest bearing note. When the note is paid on March 31, the entry to record the payment should include a

List five internal controls that relate directly to payroll.

Proper payroll accounting methods are important for a business for all the reasons below except

The discount on a note payable is charged to an account that has a normal credit balance.

Which of the following are included in the employer's payroll taxes?

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?

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

Darius Company has the following information for the pay period of January 15 - 31, 20xx. Assuming no employees are subject to ceilings for their earnings, calculate Salaries Payable and Employer Payroll Taxes Payable.

The employee earnings record would contain which column that the payroll register would probably not contain?

The journal entry a company uses to record the issuance of an interest-bearing note for the purpose of borrowing funds for the business is

Each year there is a ceiling for the amount that is subject to all of the following except

A pension plan which promises employees a fixed annual pension benefit, based on years of service and compensation, is called a(n)

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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Exam 10: Current Liabilities and Payroll

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

Assuming a 360-day year, when a $40,000, 90-day, 9% interest-bearing note payable matures, total payment will amount to:

Which of the following forms is typically given to employees at the end of the calendar year so that employees can file their individual income tax forms?

A business borrowed $40,000 on March 1 of the current year by signing a 30-day, 9% interest bearing note. When the note is paid on March 31, the entry to record the payment should include a

List five internal controls that relate directly to payroll.

Proper payroll accounting methods are important for a business for all the reasons below except

The discount on a note payable is charged to an account that has a normal credit balance.

Which of the following are included in the employer's payroll taxes?

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?

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

Darius Company has the following information for the pay period of January 15 - 31, 20xx. Assuming no employees are subject to ceilings for their earnings, calculate Salaries Payable and Employer Payroll Taxes Payable.

The employee earnings record would contain which column that the payroll register would probably not contain?

The journal entry a company uses to record the issuance of an interest-bearing note for the purpose of borrowing funds for the business is

Each year there is a ceiling for the amount that is subject to all of the following except

A pension plan which promises employees a fixed annual pension benefit, based on years of service and compensation, is called a(n)

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters