Question 1

Exhibit 6-1
The totals from the first payroll of the year are shown below.
 
-Refer to Exhibit 6-1.Journalize the entry to record the payroll.

Accepted Answer

Wages Expense
36,195.10
FICA Taxes Payable-OASDI
2,244.10
FICA Taxes Payable-HI
524.83
Employees FIT Payable
6,515.00
Employees SIT Payable
361.95
Union Dues Payable
500.00
Cash
26,049.22

Question 2

The total of the net amount paid to employees each payday is credited to either the cash account or the salaries payable account.

Accepted Answer

A) True 
 B)False  True

Question 3

The entry to record the employer's payroll taxes usually includes credits to the liability accounts for FICA (OASDI and HI),FUTA,and SUTA taxes.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following items would require an adjusting entry at the end of each accounting period?

Accepted Answer

A)   Garnishment for child support payments
B)   Withholdings for a 401(k) plan
C)   Vacation pay earned by employees
D)   Union dues withheld
E)   None of the above

Question 5

In order to prepare Forms W-2,an employer would utilize the employee's earnings record.

Accepted Answer

A) True 
 B)False

Question 6

When recording the deposit of FUTA taxes owed,the proper entry is:

Accepted Answer

A)   FUTA Tax ExpenseCash
B)   Payroll TaxesCash
C)   Payroll TaxesFUTA Taxes Payable
D)   FUTA Taxes PayableCash
E)   FUTA Tax ExpenseFUTA Taxes Payable

Question 7

The employee's earnings record provides information for each of the following except:

Accepted Answer

A)   completing Forms W-2.
B)   completing the journal entry to record the payroll.
C)   determining when the accumulated wages of an employee reach cutoff levels.
D)   preparing reports required by state unemployment compensation laws.
E)   preparing the payroll register.

Question 8

Companies usually provide a separate column in the payroll register to record the employer's payroll taxes.

Accepted Answer

A) True 
 B)False

Question 9

Under the Consumer Credit Protection Act,disposable earnings are the earnings remaining after any deductions for health insurance.

Accepted Answer

A) True 
 B)False

Question 10

Exhibit 6-1
The totals from the first payroll of the year are shown below.
 
-Refer to Exhibit 6-1.Journalize the adjustment for accrued wages for the following Monday,which is the end of the accounting period.The gross payroll for that day is $7,475.​

Accepted Answer

The answer of Exhibit 6-1
The totals from the first payroll...

Question 11

At the time that the entry is made to record the employer's payroll taxes,the SUTA tax is recorded at the net amount (0.6%).

Accepted Answer

A) True 
 B)False

Question 12

Under the provisions of the Consumer Credit Protection Act,an employer can discharge an employee simply because the employee's wage is subject to garnishment for a single indebtedness.

Accepted Answer

A) True 
 B)False

Question 13

Since vacation time is paid when used,there is no need to accrue this time in a liability account at the end of each accounting period.

Accepted Answer

A) True 
 B)False

Question 14

In recording the monthly adjusting entry for accrued wages at the end of the accounting period,the amount of the adjustment would usually be determined by:

Accepted Answer

A)   collecting the timesheets for the days accrued.
B)   using the same amount as the prior month's adjustment.
C)   using the wages of the salaried workers only.
D)   a percentage of the previous week's gross payroll.
E)   a percentage of the previous week's net payroll.

Question 15

Deductions from gross pay in the payroll register are reflected on the credit side of the journal entry to record the payroll.

Accepted Answer

A) True 
 B)False

Question 16

Tax withholdings from employees' pays reduce the amount of the debit to Salary Expense in the payroll entry.

Accepted Answer

A) True 
 B)False

Question 17

The payroll taxes incurred by an employer are FICA,FUTA,and SUTA.

Accepted Answer

A) True 
 B)False

Question 18

If wages are paid weekly,postings to the employee's earnings record would be done once a month.

Accepted Answer

A) True 
 B)False

Question 19

The adjusting entry to record the accrued vacation pay at the end of an accounting period includes credits to the tax withholding liability accounts.

Accepted Answer

A) True 
 B)False

Question 20

The employer's payroll tax expenses are recorded by all employers at the time these taxes are actually paid.

Accepted Answer

A) True 
 B)False

Exam 6: Analyzing and Journalizing Payroll

Exhibit 6-1 The totals from the first payroll of the year are shown below. -Refer to Exhibit 6-1.Journalize the entry to record the payroll.

The total of the net amount paid to employees each payday is credited to either the cash account or the salaries payable account.

The entry to record the employer's payroll taxes usually includes credits to the liability accounts for FICA (OASDI and HI),FUTA,and SUTA taxes.

Which of the following items would require an adjusting entry at the end of each accounting period?

In order to prepare Forms W-2,an employer would utilize the employee's earnings record.

When recording the deposit of FUTA taxes owed,the proper entry is:

The employee's earnings record provides information for each of the following except:

Companies usually provide a separate column in the payroll register to record the employer's payroll taxes.

Under the Consumer Credit Protection Act,disposable earnings are the earnings remaining after any deductions for health insurance.

Exhibit 6-1 The totals from the first payroll of the year are shown below. -Refer to Exhibit 6-1.Journalize the adjustment for accrued wages for the following Monday,which is the end of the accounting period.The gross payroll for that day is $7,475.​

At the time that the entry is made to record the employer's payroll taxes,the SUTA tax is recorded at the net amount (0.6%).

Under the provisions of the Consumer Credit Protection Act,an employer can discharge an employee simply because the employee's wage is subject to garnishment for a single indebtedness.

Since vacation time is paid when used,there is no need to accrue this time in a liability account at the end of each accounting period.

In recording the monthly adjusting entry for accrued wages at the end of the accounting period,the amount of the adjustment would usually be determined by:

Deductions from gross pay in the payroll register are reflected on the credit side of the journal entry to record the payroll.

Tax withholdings from employees' pays reduce the amount of the debit to Salary Expense in the payroll entry.

The payroll taxes incurred by an employer are FICA,FUTA,and SUTA.

If wages are paid weekly,postings to the employee's earnings record would be done once a month.

The adjusting entry to record the accrued vacation pay at the end of an accounting period includes credits to the tax withholding liability accounts.

The employer's payroll tax expenses are recorded by all employers at the time these taxes are actually paid.

Exhibit 6-1 The totals from the first payroll of the year are shown below. -Refer to Exhibit 6-1.Journalize the adjustment for accrued wages for the following Monday,which is the end of the accounting period.The gross payroll for that day is $7,475.