Question 1

Form 941 is filed:

Accepted Answer

A)  monthly. 
B)  annually. 
C)  weekly. 
D)  quarterly. 
A)  monthly. 
B)  annually. 
C)  weekly. 
D)  quarterly. D

Question 2

FUTA taxes are paid:

Accepted Answer

A)  by the end of January of the following year if the amount owed is less than $500. 
B)  by the end of the month following the end of the calendar quarter if the amount owed is more than $500. 
C)  at the same time as the Form 941 taxes. 
D)  Both A and B are correct. 
A)  by the end of January of the following year if the amount owed is less than $500. 
B)  by the end of the month following the end of the calendar quarter if the amount owed is more than $500. 
C)  at the same time as the Form 941 taxes. 
D)  Both A and B are correct. D

Question 3

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary).
-

Accepted Answer

The answer of For each of the following, identify in...

Question 4

The correct journal entry to record the payment of SUTA is:

Accepted Answer

A)  debit SUTA Expense; credit Cash. 
B)  debit Cash; credit SUTA Expense. 
C)  debit Cash; credit SUTA Payable. 
D)  debit SUTA Payable; credit Cash. 
A)  debit SUTA Expense; credit Cash. 
B)  debit Cash; credit SUTA Expense. 
C)  debit Cash; credit SUTA Payable. 
D)  debit SUTA Payable; credit Cash.

Question 5

Prepare the general journal entry to record the payment of the retirement fund withholdings.
___________________________________________ _________ _________
___________________________________________ _________ _________
___________________________________________ _________ _________
___________________________________________ _________ _________

Accepted Answer

The answer of Prepare the general journal entry to record...

Question 6

What is debited if State Unemployment Tax Payable (SUTA) is credited?

Accepted Answer

A)  Payroll Tax Expense 
B)  SUTA Tax Payable 
C)  Pre-paid Payroll Taxes 
D)  Salaries Expense 
A)  Payroll Tax Expense 
B)  SUTA Tax Payable 
C)  Pre-paid Payroll Taxes 
D)  Salaries Expense

Question 7

S. Paul, an employee of Plum Hollow Country Club, earned $1,100 during the first week of January. His withholding included: federal income tax, 15%; state income tax, 5%; FICA-OASDI, 6.2%; FICA-Medicare, 1.45%; and union dues $25. Determine the tax for OASDI, Medicare, Federal Income Tax, and State Income Tax.

Accepted Answer

The answer of S. Paul, an employee of Plum Hollow...

Question 8

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary).
-

Accepted Answer

The answer of For each of the following, identify in...

Question 9

Employees must receive W-3s by January 31 of the following year.

Accepted Answer

A) True 
 B)False

Question 10

A banking day is any day that the bank is open to the public for business.

Accepted Answer

A) True 
 B)False

Question 11

FICA taxes are levied only on employees.

Accepted Answer

A) True 
 B)False

Question 12

The correct journal entry to record the payment of FUTA is to:

Accepted Answer

A)  debit Cash; credit FUTA Payable. 
B)  debit FUTA Expense; credit Cash. 
C)  debit FUTA Payable; credit Cash. 
D)  debit Cash; credit FUTA Expense. 
A)  debit Cash; credit FUTA Payable. 
B)  debit FUTA Expense; credit Cash. 
C)  debit FUTA Payable; credit Cash. 
D)  debit Cash; credit FUTA Expense.

Question 13

Form 940 is used by businesses that employ workers in multiple states.

Accepted Answer

A) True 
 B)False

Question 14

Gail's Bakery had the following information before the pay period ending June 30:   
Assume: Each hourly employee is paid 1½ times pay rate for time worked in excess of 40 hours.
FICA-OASDI applied to the first $128,400 at a rate of 6.2%.
FICA-Medicare applied at a rate of 1.45%.
FUTA applied to the first $7,000 at a rate of 0.8%.
SUTA applied to the first $7,000 at a rate of 5.6%.
State income tax is 3.8%.
Given the above information, what would be the amount applied to Office Employee Wage Expense?

Accepted Answer

A)  Debit $565 
B)  Credit $565 
C)  Debit $510 
D)  Credit $510 
A)  Debit $565 
B)  Credit $565 
C)  Debit $510 
D)  Credit $510

Question 15

Information to prepare W-2 forms can be obtained from the current payroll register.

Accepted Answer

A) True 
 B)False

Question 16

Ben's Mentoring had the following information for the pay period ending September 30:   Assume:
FICA-OASDI applied to the first $128,400 at a rate of 6.2%.
FICA-Medicare applied at a rate of 1.45%.
FUTA applied to the first $7,000 at a rate of 0.8%.
SUTA applied to the first $7,000 at a rate of 5.6%.
State income tax is 3.8%.
Employees contribute to their retirement fund at a rate of 5.5% of their gross earnings.
-Compute the total regular earnings.

Accepted Answer

The answer of Ben's Mentoring had the following information for...

Question 17

The balance in the Wages and Salaries Expense account is equal to the amount of cash paid to the employees.

Accepted Answer

A) True 
 B)False

Question 18

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 1/2)   Assume:
FICA-OASDI is 6.2% based on a limit of $128,400.
FICA-Medicare is 1.45%.
FUTA is .8% based on a limit of $7,000.
SUTA is 5.6% based on a limit of $7,000.
State income tax is 2.8%.
-Compute the total federal income tax.

Accepted Answer

The answer of The following data applies to the July...

Question 19

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary).
-

Accepted Answer

The answer of For each of the following, identify in...

Question 20

Prepare the general journal entry to record the payment of the employees.
___________________________________________ _________ _________
___________________________________________ _________ _________
___________________________________________ _________ _________
___________________________________________ _________ _________

Accepted Answer

The answer of Prepare the general journal entry to record...

Exam 8: Paying, Recording, and Reporting Payroll and Payroll Taxes:

Form 941 is filed:

FUTA taxes are paid:

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). -

The correct journal entry to record the payment of SUTA is:

What is debited if State Unemployment Tax Payable (SUTA) is credited?

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). -

Employees must receive W-3s by January 31 of the following year.

A banking day is any day that the bank is open to the public for business.

FICA taxes are levied only on employees.

The correct journal entry to record the payment of FUTA is to:

Form 940 is used by businesses that employ workers in multiple states.

Information to prepare W-2 forms can be obtained from the current payroll register.

The balance in the Wages and Salaries Expense account is equal to the amount of cash paid to the employees.

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). -

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, Plant, Equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, Dividends, Treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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