Exam 10: Current Liabilities, Payroll, and Long-Term Liabilities

Which of the following is referred to as net pay?

Which of the following is included in the entry to record warranty expense?

Which of the following items must be filed with the IRS by each employer each year?

Payroll Form 941 is required by:

Term bonds are bonds that mature in installments over a period of time.

A company has 24 employees who are paid on a monthly basis. For the most recent month, gross earnings were $78,000, of which $27,000 is subject to employment taxes. The federal unemployment tax rate is .8% and the state unemployment rate is 5.4%. Federal income taxes are withheld at the rate of 20% of total earnings. All earnings are subject to FICA taxes of 8%. What is the employees' net pay?

Which of the following would be included in the entry to record salary expense?

Which of the following is the type of account that represents taxes withheld from employees' gross pay?

The failure to accrue warranty expenses will result in the understatement of net income.

RGF Manufacturing recently signed a $200,000, 138-day note on June 22. The interest rate is 5%. Using a 365-day year, how much interest will be due on the note?

Booker Company reported sales revenue for 2007 of $800,000. The products were sold with a six-month warranty. Members of Booker's management estimate the cost of the warranty will be equal to 3% of sales revenue. Which of the following is included in the entry to record the repair of a product under warranty?

Which of the following are categories of contingent liabilities?

Which of the following is the total amount of employee compensation before deductions?

Which of the following is an expense that the business has not yet paid?

Which of the following would be classified as a non-current liability on a balance sheet?

Which of the following is the form filed with the IRS to report the employer's federal income tax withheld and FICA taxes withheld?

A company has 24 employees who are paid on a monthly basis. For the most recent month, gross earnings were $78,000, of which $27,000 is subject to employment taxes. The federal unemployment tax rate is .8% and the state unemployment rate is 5.4%. Federal income taxes are withheld at the rate of 20% of total earnings. All earnings are subject to FICA taxes of 8%. Which of the following is included in the entry to record salary expense?

Which are required to be deducted from employees' paychecks?

A premium on a bond payable is the excess of the bond's maturity value over its issue price.

Indicate how each of the following accounts would be classified on the balance sheet and indicate whether the amount is a known amount or is based upon an estimate. Item Account Current or long- term liability Known amount or an estimate a. Salaries payable to employees b. FICA tax payable c. Accounts payable d. Sales tax payable e. Note payable (due in six months) f. State unemployment tax payable g. Federal unemployment tax payable h. Note payable (due in three years) i. Unearned rent revenue (to be earned in within six months) j. Contingent liability probable to become an actual liability within six months k. Estimated warranty payable (to expire in three months)