Question 1

Gross pay less all deductions is called __________________.

Accepted Answer

The answer of Gross pay less all deductions is called...

Question 2

All Star Sports receives $48,000,000 cash in advance ticket sales for 12 home games. Record the advance ticket sales on April 30. Record the revenue earned for the first home game played on August 14.

Accepted Answer

The answer of All Star Sports receives $48,000,000 cash in...

Question 3

The payroll records of a company provided the following data for the weekly pay period ended December 7:   The FICA social security tax rate is 6.2% and the FICA Medicare tax rate is 1.45% on all of this week's wages paid to each employee. The federal and state unemployment tax rates are 0.8% and 5.4%, respectively, on the first $7,000 paid to each employee. Prepare the journal entries to (a) accrue the payroll and (b) record payroll taxes expense.

Accepted Answer

The answer of The payroll records of a company provided...

Question 4

On December 1, Martin Company signed a 90-day, 6% note payable, with a face value of $5,000. What amount of interest expense is accrued at December 31 on the note?

Accepted Answer

A)  $0 
B)  $25 
C)  $50 
D)  $75 
E)  $300 
A)  $0 
B)  $25 
C)  $50 
D)  $75 
E)  $300

Question 5

A company sells computers at a selling price of $1,800 each. Each computer has a 2 year warranty that covers replacement of defective parts. It is estimated that 2% of all computers sold will be returned under the warranty at an average cost of $150 each. During November, the company sold 30,000 computers, and 400 computers were serviced under the warranty at a total cost of $55,000. The balance in the Estimated Warranty Liability account at November 1 was $29,000. What is the company's warranty expense for the month of November?

Accepted Answer

A)  $26,000 
B)  $45,000 
C)  $55,000 
D)  $60,000 
E)  $90,000 
A)  $26,000 
B)  $45,000 
C)  $55,000 
D)  $60,000 
E)  $90,000

Question 6

Companies with many employees often use a special payroll bank account to pay employees.

Accepted Answer

A) True 
 B)False

Question 7

A company's fixed interest expense is $8,000, its income before interest expense and income taxes is $32,000. Its net income is $9,600. The company's times interest earned ratio equals:

Accepted Answer

A)  0.25. 
B)  0.30. 
C)  0.83. 
D)  3.33. 
E)  4.0. 
A)  0.25. 
B)  0.30. 
C)  0.83. 
D)  3.33. 
E)  4.0.

Question 8

A company can have a liability even if the amount of the obligation is unknown.

Accepted Answer

A) True 
 B)False

Question 9

A ________________________ is a potential obligation that depends on a future event arising from a past transaction or event.

Accepted Answer

Contingent

Question 10

If a company uses a special payroll bank account:

Accepted Answer

A)  The company does not need to issue paychecks. 
B)  The company draws one check for the entire payroll on the regular bank account and deposits it in the payroll bank account. 
C)  The company must use a federal depository bank for the payroll bank account. 
D)  There is no need for a payroll register. 
E)  There is no need to issue W-2's. 
A)  The company does not need to issue paychecks. 
B)  The company draws one check for the entire payroll on the regular bank account and deposits it in the payroll bank account. 
C)  The company must use a federal depository bank for the payroll bank account. 
D)  There is no need for a payroll register. 
E)  There is no need to issue W-2's.

Question 11

Employee vacation benefits:

Accepted Answer

A)  Are estimated liabilities. 
B)  Are contingent liabilities. 
C)  Are recorded as an expense when the employee takes a vacation. 
D)  Are recorded as an expense when the employee retires. 
E)  Increase net income. 
A)  Are estimated liabilities. 
B)  Are contingent liabilities. 
C)  Are recorded as an expense when the employee takes a vacation. 
D)  Are recorded as an expense when the employee retires. 
E)  Increase net income.

Question 12

Required payroll deductions result from laws and include income taxes, Social Security taxes, pension and health contributions, union dues, and charitable giving.

Accepted Answer

A) True 
 B)False

Question 13

The current FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both taxes are applied to the first $7,000 of an employee's pay. Assume that an employee earned $8,900. What is the amount of total unemployment taxes the employer must pay on this employee's wages?

Accepted Answer

A)  $322.00. 
B)  $434.00. 
C)  $480.60. 
D)  $551.80. 
E)  Zero, since the employee's wages exceed the maximum of $7,000. 
A)  $322.00. 
B)  $434.00. 
C)  $480.60. 
D)  $551.80. 
E)  Zero, since the employee's wages exceed the maximum of $7,000.

Gross pay less all deductions is called __________________.

All Star Sports receives $48,000,000 cash in advance ticket sales for 12 home games. Record the advance ticket sales on April 30. Record the revenue earned for the first home game played on August 14.

On December 1, Martin Company signed a 90-day, 6% note payable, with a face value of $5,000. What amount of interest expense is accrued at December 31 on the note?

Companies with many employees often use a special payroll bank account to pay employees.

A company's fixed interest expense is $8,000, its income before interest expense and income taxes is $32,000. Its net income is $9,600. The company's times interest earned ratio equals:

A company can have a liability even if the amount of the obligation is unknown.

A ________________________ is a potential obligation that depends on a future event arising from a past transaction or event.

If a company uses a special payroll bank account:

Employee vacation benefits:

Required payroll deductions result from laws and include income taxes, Social Security taxes, pension and health contributions, union dues, and charitable giving.

The current FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both taxes are applied to the first $7,000 of an employee's pay. Assume that an employee earned $8,900. What is the amount of total unemployment taxes the employer must pay on this employee's wages?

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resources, and Intangibles

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Cost Accounting

Process Cost Accounting

Cost Allocation and Performance Measurement

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Capital Budgeting and Managerial Decisions

Time Value of Money

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Exam 11: Current Liabilities and Payroll Accounting

Gross pay less all deductions is called __________________.

All Star Sports receives $48,000,000 cash in advance ticket sales for 12 home games. Record the advance ticket sales on April 30. Record the revenue earned for the first home game played on August 14.

On December 1, Martin Company signed a 90-day, 6% note payable, with a face value of $5,000. What amount of interest expense is accrued at December 31 on the note?

Companies with many employees often use a special payroll bank account to pay employees.

A company's fixed interest expense is $8,000, its income before interest expense and income taxes is $32,000. Its net income is $9,600. The company's times interest earned ratio equals:

A company can have a liability even if the amount of the obligation is unknown.

A ________________________ is a potential obligation that depends on a future event arising from a past transaction or event.

If a company uses a special payroll bank account:

Employee vacation benefits:

Required payroll deductions result from laws and include income taxes, Social Security taxes, pension and health contributions, union dues, and charitable giving.

The current FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both taxes are applied to the first $7,000 of an employee's pay. Assume that an employee earned $8,900. What is the amount of total unemployment taxes the employer must pay on this employee's wages?

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resources, and Intangibles

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Cost Accounting

Process Cost Accounting

Cost Allocation and Performance Measurement

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Capital Budgeting and Managerial Decisions

Time Value of Money

Filters