Question 1

Wages and Salaries Expense is:

Accepted Answer

A)  equal to net pay. 
B)  equal to gross pay. 
C)  equal to the employer's taxes. 
D)  equal to wages and salaries paid in cash. 
A)  equal to net pay. 
B)  equal to gross pay. 
C)  equal to the employer's taxes. 
D)  equal to wages and salaries paid in cash.

Question 2

Using the information below, determine the amount of the payroll tax expense for B. Hope Company's first payroll of the year. In your answer list the amounts for FICA (OASDI and Medicare), SUTA, and FUTA.   Assume:
FICA tax rates are: OASDI 6.2% on a limit of $128,400 and Medicare 1.45%.
State Unemployment tax rate is 5.0% on the first $7,000.
Federal Unemployment tax rate is 0.8% on the first $7,000.

Accepted Answer

The answer of Using the information below, determine the amount...

Question 3

Jefferson Tutoring had the following payroll information on February 28:   Assume: FICA tax rates are: OASDI 6.2% on a limit of $128,400 and Medicare 1.45%.
State Unemployment tax rate is 2% on the first $7,000.
Federal Unemployment tax rate is 0.8% on the first $7,000.
Using the information above, the journal entry to record the payroll tax expense for Jefferson Tutoring would include:

Accepted Answer

A)  a debit to Payroll Tax Expense in the amount of $429.55. 
B)  a credit to FUTA Payable for $20.00. 
C)  a credit to SUTA Payable for $50.00. 
D)  All of the above are correct. 
A)  a debit to Payroll Tax Expense in the amount of $429.55. 
B)  a credit to FUTA Payable for $20.00. 
C)  a credit to SUTA Payable for $50.00. 
D)  All of the above are correct.

Question 4

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 employees' FICA-OASDI.

Accepted Answer

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

Question 5

There is no limit on the amount of taxes paid for SUTA.

Accepted Answer

A) True 
 B)False

Question 6

Both employer and employee contribute to FICA-OASDI and SUTA tax.

Accepted Answer

A) True 
 B)False

Question 7

The W-3 is also known as the Transmittal of Wage and Tax Statements.

Accepted Answer

A) True 
 B)False

Question 8

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 retirement.

Accepted Answer

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

Question 9

Prepare a general journal payroll entry for Advanced Computer Programming using the following information:   Assume the following:
a) FICA: OASDI, 6.2% on a limit of $128,400; Medicare, 1.45%.
b) Federal income tax is 15% of gross pay.
c) Each employee pays $20 per week for medical insurance.

Accepted Answer

The answer of Prepare a general journal payroll entry for...

Question 10

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 11

What type of an account is Wages and Salaries Payable?

Accepted Answer

A)  Asset 
B)  Liability 
C)  Contra-liability 
D)  Expense 
A)  Asset 
B)  Liability 
C)  Contra-liability 
D)  Expense

Question 12

Which form is used to report FICA taxes for the employer and employee, and also federal income taxes for the employee?

Accepted Answer

A)  Form 941 
B)  Form 944 
C)  Form 940 
D)  Form W-2 
A)  Form 941 
B)  Form 944 
C)  Form 940 
D)  Form W-2

Question 13

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 deductions for the employees' paychecks.

Accepted Answer

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

Question 14

The form used for the annual federal unemployment taxes is Form 941.

Accepted Answer

A) True 
 B)False

Question 15

A monthly depositor:

Accepted Answer

A)  is an employer who only has to deposit Form 941 taxes on the 15th day of the month (or next banking day). 
B)  is determined by the amount of Form 941 taxes that they paid in the look-back-period. 
C)  will remain a monthly depositor, once classified, for one year at which time they will be reevaluated. 
D)  All of the above answers are correct. 
A)  is an employer who only has to deposit Form 941 taxes on the 15th day of the month (or next banking day). 
B)  is determined by the amount of Form 941 taxes that they paid in the look-back-period. 
C)  will remain a monthly depositor, once classified, for one year at which time they will be reevaluated. 
D)  All of the above answers are correct.

Question 16

Payroll information for Kinzer's Interior Decorating for the first week in October is as follows:   Taxable earnings subject to Federal and State Unemployment taxes: $5,000
Assume the following tax rates:   Required: Prepare the employer's payroll tax entry for Kinzer for the first week of October.

Accepted Answer

The answer of Payroll information for Kinzer's Interior Decorating for...

Question 17

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 regular earnings.

Accepted Answer

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

Question 18

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 19

The same deposit rules apply to employers based on the amount collected and owed by that employer for payroll taxes.

Accepted Answer

A) True 
 B)False

Question 20

The Wages and Salaries Expense account would be used to record:

Accepted Answer

A)  net earnings for the office workers. 
B)  the amount for payroll tax. 
C)  gross earnings for the office workers. 
D)  a debit for the amount of net pay owed to the office workers. 
A)  net earnings for the office workers. 
B)  the amount for payroll tax. 
C)  gross earnings for the office workers. 
D)  a debit for the amount of net pay owed to the office workers.

Wages and Salaries Expense is:

There is no limit on the amount of taxes paid for SUTA.

Both employer and employee contribute to FICA-OASDI and SUTA tax.

The W-3 is also known as the Transmittal of Wage and Tax Statements.

Prepare a general journal payroll entry for Advanced Computer Programming using the following information: Assume the following: a) FICA: OASDI, 6.2% on a limit of $128,400; Medicare, 1.45%. b) Federal income tax is 15% of gross pay. c) Each employee pays $20 per week for medical insurance.

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). -

What type of an account is Wages and Salaries Payable?

Which form is used to report FICA taxes for the employer and employee, and also federal income taxes for the employee?

The form used for the annual federal unemployment taxes is Form 941.

A monthly depositor:

Payroll information for Kinzer's Interior Decorating for the first week in October is as follows: Taxable earnings subject to Federal and State Unemployment taxes: $5,000 Assume the following tax rates: Required: Prepare the employer's payroll tax entry for Kinzer for the first week of October.

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 same deposit rules apply to employers based on the amount collected and owed by that employer for payroll taxes.

The Wages and Salaries Expense account would be used to record:

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

Filters

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

Wages and Salaries Expense is:

There is no limit on the amount of taxes paid for SUTA.

Both employer and employee contribute to FICA-OASDI and SUTA tax.

The W-3 is also known as the Transmittal of Wage and Tax Statements.

Prepare a general journal payroll entry for Advanced Computer Programming using the following information: Assume the following: a) FICA: OASDI, 6.2% on a limit of $128,400; Medicare, 1.45%. b) Federal income tax is 15% of gross pay. c) Each employee pays $20 per week for medical insurance.

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). -

What type of an account is Wages and Salaries Payable?

Which form is used to report FICA taxes for the employer and employee, and also federal income taxes for the employee?

The form used for the annual federal unemployment taxes is Form 941.

A monthly depositor:

Payroll information for Kinzer's Interior Decorating for the first week in October is as follows: Taxable earnings subject to Federal and State Unemployment taxes: $5,000 Assume the following tax rates: Required: Prepare the employer's payroll tax entry for Kinzer for the first week of October.

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 same deposit rules apply to employers based on the amount collected and owed by that employer for payroll taxes.

The Wages and Salaries Expense account would be used to record:

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

Filters