Question 1

Which one of the following payroll taxes does not result in a payroll tax expense for the employer?

Accepted Answer

A)  FICA tax 
B)  Federal income tax 
C)  Federal unemployment tax 
D)  State unemployment tax 
A)  FICA tax 
B)  Federal income tax 
C)  Federal unemployment tax 
D)  State unemployment tax B

Question 2

Lucie Ball's regular rate of pay is $15 per hour with one and one-half times her regular rate for any hours which exceed 40 hours per week. She worked 48 hours last week. Therefore, her gross wages were

Accepted Answer

A)  $720. 
B)  $600. 
C)  $780. 
D)  $1,080. 
A)  $720. 
B)  $600. 
C)  $780. 
D)  $1,080. C

Question 3

Which of the following employees would likely receive a salary instead of wages?

Accepted Answer

A)  Store clerk 
B)  Factory employee 
C)  Sales manager 
D)  Manual laborer 
A)  Store clerk 
B)  Factory employee 
C)  Sales manager 
D)  Manual laborer C

Question 4

Diane Lane earns a salary of $9,900 per month during the year. FICA taxes are 7.65% on the first $117,000 of gross earnings and 1.45% in excess of $117,000. Federal unemployment insurance taxes are 6.2% of the first $7,000; however, a credit is allowed equal to the state unemployment insurance taxes of 5.4% on the $7,000. During the year, $32,300 was withheld for federal income taxes and $6,700 was withheld for state income taxes.
Instructions
(a) Prepare a journal entry summarizing the payment of Lane's total salary during the year.
(b) Prepare a journal entry summarizing the employer payroll tax expense on Lane's salary for the year.
(c) Determine the cost of employing Lane for the year.

Accepted Answer

The answer of Diane Lane earns a salary of $9,900...

Question 5

Internal control over payroll is not necessary because employees will complain if they do not receive the correct amount on their payroll checks.

Accepted Answer

A) True 
 B)False

Question 6

Control over timekeeping does not include

Accepted Answer

A)  having one employee punch the time cards for several employees in the same work area. 
B)  time clock procedure monitoring by a supervisor. 
C)  pay period time reports kept by a supervisor for salaried personnel. 
D)  overtime approval by a supervisor. 
A)  having one employee punch the time cards for several employees in the same work area. 
B)  time clock procedure monitoring by a supervisor. 
C)  pay period time reports kept by a supervisor for salaried personnel. 
D)  overtime approval by a supervisor.

Question 7

Banner Company had the following payroll data for the year:   
Assume the following:   
Instructions
Compute Banner's payroll tax expense for the year. Make a summary journal entry to record the payroll tax expense.

Accepted Answer

@#IMG-DLM& Journal e

Question 8

A good internal control feature is to have several employees choose one person to punch all of their time cards.

Accepted Answer

A) True 
 B)False

Question 9

FICA taxes do not provide workers with

Accepted Answer

A)  life insurance. 
B)  supplemental retirement. 
C)  employment disability. 
D)  medical benefits. 
A)  life insurance. 
B)  supplemental retirement. 
C)  employment disability. 
D)  medical benefits.

Question 10

Assume that the payroll records of Erroll Oil Company provided the following information for the weekly payroll ended November 30, 2018.   
Additional information: All employees are paid overtime at time and a half for hours worked in excess of 40 per week. The FICA tax rate is 7.65% for the first $117,000 of each employee's annual earnings and 1.45% in excess of $117,000. The employer pays unemployment taxes of 6.2% (5.4% for state and .8% for federal) on the first $7,000 of each employee's annual earnings.
Instructions
(a) Prepare the payroll register for the pay period.
(b) Prepare general journal entries to record the payroll and payroll taxes.

Accepted Answer

The answer of Assume that the payroll records of Erroll...

Question 11

The tax that is paid equally by the employer and employee is the

Accepted Answer

A)  federal income tax. 
B)  federal unemployment tax. 
C)  state unemployment tax. 
D)  FICA tax. 
A)  federal income tax. 
B)  federal unemployment tax. 
C)  state unemployment tax. 
D)  FICA tax.

Question 12

An employee's payroll check is distributed by the

Accepted Answer

A)  personnel department. 
B)  payroll department. 
C)  cashier. 
D)  treasurer's department. 
A)  personnel department. 
B)  payroll department. 
C)  cashier. 
D)  treasurer's department.

Question 13

Changes in pay rates during employment should be authorized by the

Accepted Answer

A)  human resources department. 
B)  payroll department. 
C)  treasurer's department. 
D)  timekeeping department. 
A)  human resources department. 
B)  payroll department. 
C)  treasurer's department. 
D)  timekeeping department.

Question 14

Assuming a FICA tax rate of 7.65% on the first $117,000 in wages and 1.45% in excess of $117,000 and a federal income tax rate of 20% on all wages, what would be an employee's net pay for the year if he earned $180,000? Round all calculations to the nearest dollar.

Accepted Answer

A)  $134,867 
B)  $133,953 
C)  $144,000 
D)  $134,136 
A)  $134,867 
B)  $133,953 
C)  $144,000 
D)  $134,136

Question 15

Jerri Rice has worked 44 hours this week. She worked at least 8 hours each day. Her regular hourly wage is $12 per hour with one and one-half times her regular rate for any hours which exceed 40 hours per week. What are Jerri's gross wages for the week?

Accepted Answer

A)  $528 
B)  $552 
C)  $792 
D)  $576 
A)  $528 
B)  $552 
C)  $792 
D)  $576

Question 16

Match between columns
                        Premises: Distribution of checks by the treasurer.
Supervisor approves hours worked.
Posting job openings.
Maintenance of payroll records.
Verification of payroll calculations.
Screening and interviewing of job applicants.
Employment authorization.
Signing prenumbered payroll checks.
Use of a timeclock.
Payroll tax return preparation.
Employee signs receipt acknowledging cash received.
Documentation of employee hiring.

Accepted Answer

The Answer of Hiring Employees and Timekeeping and Preparing the is...

Question 17

A Wage and Tax Statement shows gross earnings, FICA taxes withheld, and income taxes withheld for the year.

Accepted Answer

A) True 
 B)False

Question 18

FICA taxes withheld and federal income taxes withheld are mandatory payroll deductions.

Accepted Answer

A) True 
 B)False

Question 19

Ann Hech's regular hourly wage is $18 an hour. She receives overtime pay at the rate of time and a half. The FICA tax rate is 7.65%. Ann is paid every two weeks. For the first pay period in January, Ann worked 86 hours of which 6 were overtime hours. Ann's federal income tax withholding is $400 and her state income tax withholding is $170. Ann has authorized that $50 be withheld from her check each pay period for savings bonds.
Instructions
Compute Ann Hech's gross earnings and net pay for the pay period showing each payroll deduction in arriving at net pay.

Accepted Answer

The answer of Ann Hech's regular hourly wage is $18...

Question 20

Match the items below by entering the appropriate code letter in the space provided.
A. Wage and Tax Statement 
B. Net pay 
C. Federal income taxes
D. FICA taxes
E. Federal unemployment taxes
1. Levied against employees' wages without limit.
2. A payroll tax expense levied only against the employer based on employees' wages.
3. Gross earnings less payroll deductions.
4. A form showing gross earnings and income taxes withheld.
5. Levied against employees' wages with a maximum limit.

Accepted Answer

1. C
2. E

Exam 28: Payroll Accounting

Which one of the following payroll taxes does not result in a payroll tax expense for the employer?

Lucie Ball's regular rate of pay is $15 per hour with one and one-half times her regular rate for any hours which exceed 40 hours per week. She worked 48 hours last week. Therefore, her gross wages were

Which of the following employees would likely receive a salary instead of wages?

Internal control over payroll is not necessary because employees will complain if they do not receive the correct amount on their payroll checks.

Control over timekeeping does not include

Banner Company had the following payroll data for the year: Assume the following: Instructions Compute Banner's payroll tax expense for the year. Make a summary journal entry to record the payroll tax expense.

A good internal control feature is to have several employees choose one person to punch all of their time cards.

FICA taxes do not provide workers with

The tax that is paid equally by the employer and employee is the

An employee's payroll check is distributed by the

Changes in pay rates during employment should be authorized by the

Assuming a FICA tax rate of 7.65% on the first $117,000 in wages and 1.45% in excess of $117,000 and a federal income tax rate of 20% on all wages, what would be an employee's net pay for the year if he earned $180,000? Round all calculations to the nearest dollar.

Jerri Rice has worked 44 hours this week. She worked at least 8 hours each day. Her regular hourly wage is $12 per hour with one and one-half times her regular rate for any hours which exceed 40 hours per week. What are Jerri's gross wages for the week?

A Wage and Tax Statement shows gross earnings, FICA taxes withheld, and income taxes withheld for the year.

FICA taxes withheld and federal income taxes withheld are mandatory payroll deductions.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations Perpetual Approach

Inventories Periodic Approach

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions, and Stockholders Equity

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Time Value of Money

Investments

Subsidiary Ledgers and Special Journals

Other Significant Liabilities

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