Question 1

Form 8109 is used to make deposits.

Accepted Answer

A) True 
 B)False  True

Question 2

If Wages and Salaries Payable is debited,what account would most likely be credited?

Accepted Answer

A) Cash 
B) Wages and Salaries Expense 
C) Payroll Expense 
D) SUTA Payable 
A) Cash 
B) Wages and Salaries Expense 
C) Payroll Expense 
D) SUTA Payable A

Question 3

The payment of FUTA would include:

Accepted Answer

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

Question 4

What is the purpose of Form 8109?

Accepted Answer

A) Used by employers to report the amount of unemployment tax due for the year 
B) A quarterly tax report indicating the amount of FICA (OASDI and Medicare)taxes owed 
C) A coupon that is completed and sent along with payments of tax deposits relating to forms 940,941,or 944 
D) To allow employers who owe less than $2,500 to report their FICA (OASDI and Medicare)taxes owed 
A) Used by employers to report the amount of unemployment tax due for the year 
B) A quarterly tax report indicating the amount of FICA (OASDI and Medicare)taxes owed 
C) A coupon that is completed and sent along with payments of tax deposits relating to forms 940,941,or 944 
D) To allow employers who owe less than $2,500 to report their FICA (OASDI and Medicare)taxes owed

Question 5

Estimate the annual advance premium for workers' compensation insurance,and record it in general journal form using the following data:
 $$\begin{array} { l l l } 
\text { Departiment } &  { \text { Estimated Pyroll }} &{\text { Frte Ier \$100 } } \
\text { Office } & \$ 15,000 & \$ 0.24 \
\text { Dietary } & 10,000 & 0.31 \
\text { Nurging } & 135,010 & 3.00
\end{array}$$

Accepted Answer

None

Question 6

The payroll tax expense is recorded at the same time the payroll is recorded.

Accepted Answer

A) True 
 B)False

Question 7

Sweetman's Recording Studio payroll records show the following information:
$\begin{array}{llcc}
&\text { Cumulative Earnings } &\text { Weekly }   \
&\underline{\text { Before Payroll  }} &\underline{ \text { Salary }} &\
 \text {  D. Gordon} &\$20.000&950\

\end{array}$

Assume the following:
a)FICA: OASDI,6.2% on a limit of $106,800; Medicare,1.45%
b)Each employee contributes $40 per week for union dues
c)State income tax is 5% of gross pay
d)Federal income tax is 20% of gross pay
Prepare a general journal payroll entry.

Accepted Answer

\[\begin{array} { l l l } 
\text { Salar

Question 8

Which of the following does not apply to both a W-2 and W-3?

Accepted Answer

A) Reports the total amount of wages,tips and compensation paid to the employee. 
B) Reports the total OASDI and Medicare taxes withheld. 
C) Sent to the Social Security Administration. 
D) Employees use both forms to prepare their personal tax returns. 
A) Reports the total amount of wages,tips and compensation paid to the employee. 
B) Reports the total OASDI and Medicare taxes withheld. 
C) Sent to the Social Security Administration. 
D) Employees use both forms to prepare their personal tax returns.

Question 9

Information to prepare W-2 forms can be obtained from individual employee records.

Accepted Answer

A) True 
 B)False

Question 10

The journal entry to record the estimated advance premium payment for workers' compensation is:

Accepted Answer

A)  Cash
Prepaid Insurance, Workers' Compensation 
B)  Prepaid Insurance, Workers' Compensation
Cash 
C)  $$\text { Workers' Compensation Insurance Expense }$$
 $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\text { Cask }$ 
D)  Workers' Compensation Insurance Payable
 $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $Cash 
A)  Cash
Prepaid Insurance, Workers' Compensation 
B)  Prepaid Insurance, Workers' Compensation
Cash 
C)  $$\text { Workers' Compensation Insurance Expense }$$
 $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\text { Cask }$ 
D)  Workers' Compensation Insurance Payable
 $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $Cash

Question 11

The information needed to make the journal entries to record the wages and salaries expense comes from:

Accepted Answer

A) form W-2. 
B) the look-back period. 
C) the payroll register. 
D) form 941. 
A) form W-2. 
B) the look-back period. 
C) the payroll register. 
D) form 941.

Question 12

Different deposit rules apply to employers based on the amount collected and owed by that employer.

Accepted Answer

A) True 
 B)False

Question 13

Payroll information for Kinzer's Interior Decorating for the first week in October is as follows:
 $\begin{array}{llcc}
  \text { Employees' gross wayes } & \$74,044 \

\end{array}$

Taxable earnings for FICA-
 $\begin{array}{llcc}
  \text {OASDI  } & 50,000 \
 \text { Medicare } &70,000\
\end{array}$

Taxable earnings subject to Federal and State Unemployment taxes: $5,000
Assume the following tax rates:
 $\begin{array}{llcc}
  \text {FICA: 0ASDI  } &6.2\%\  \
 \text { FICA: Medicare } &1.45\%\\
 \text { Federal unemployment } &0.8\%\
 \text {  State unemployment} &2.0\%\

\end{array}$

Required: Prepare the payroll tax expense entry.

Accepted Answer

None

Question 14

FICA taxes are levied only on employees.

Accepted Answer

A) True 
 B)False

Question 15

The debit amount to Payroll Tax Expense represents:

Accepted Answer

A) the employer's portion of the payroll taxes. 
B) the employees' portion of the payroll taxes. 
C) the employer's and employees' portion of the payroll taxes. 
D) None of the above are correct. 
A) the employer's portion of the payroll taxes. 
B) the employees' portion of the payroll taxes. 
C) the employer's and employees' portion of the payroll taxes. 
D) None of the above are correct.

Question 16

Which form contains information about gross earnings and is given to the employee by January 31?

Accepted Answer

A) Form W-2 
B) Form W-3 
C) Form SS-4 
D) Form W-4B 
A) Form W-2 
B) Form W-3 
C) Form SS-4 
D) Form W-4B

Question 17

An employer must always use a calendar year for payroll purposes.

Accepted Answer

A) True 
 B)False

Question 18

A calendar quarter is made up of:

Accepted Answer

A) 4 months. 
B) 13 weeks. 
C) 12 weeks. 
D) however many weeks are needed to complete the month. 
A) 4 months. 
B) 13 weeks. 
C) 12 weeks. 
D) however many weeks are needed to complete the month.

Question 19

From the following data,calculate the estimate annual advance premium for workers' compensation insurance and record it in general journal form.
$$\begin{array} { l l l } 
\text { Department } & \text { Estimated Payroll } & \text { Fate per 5100 } \
\text { Office } & \$ 50,000 & \$ 9.24 \
\text { Warehouge } & 40,000 & 1.40 \
\text { Sales } & 75,000 & 0.90
\end{array}$$

Accepted Answer

None

Question 20

Kristi's Mentoring had the following information for the pay period ending September 30:
$\begin{array}{c}
\begin{array}{c}
\text {Employee Name}\
\
\text {T. Hill}\
\text {V. Chandler}\
\text {M. Hill}
\end{array}
\begin{array}{c}
\text {Pay }\
\text {rate}\
\$ 4,500 \
12.00 \
13.00
\end{array}
\begin{array}{c}
\text {Hours}\
\text {worked}\
\text {Salaried}\
48\
43\
\end{array}
\begin{array}{c}
\text { Cumulative}\
\text { earnings } \
\$ 103,000 \
51,000 \
5,200
\end{array}
\begin{array}{c}
\text {Department}\
\
\text {Office}\
\text {Tutor}\
\text {Tutor}
\end{array}
\begin{array}{c}
\text {Federal income}\
\text {tax withheld}\
\$ 2,000.00 \
 215.00 \
 208.00 
\end{array}
\end{array}$

Assume:	
FICA-OASDI applied to the first $106,800 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 gross earnings for the tutors.________

Accepted Answer

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

Exam 8: Paying,recording,and Reporting Payroll and Payroll Taxes: The Conclusion of the Payroll Process

Form 8109 is used to make deposits.

If Wages and Salaries Payable is debited,what account would most likely be credited?

The payment of FUTA would include:

What is the purpose of Form 8109?

Estimate the annual advance premium for workers' compensation insurance,and record it in general journal form using the following data: Departiment Estimated Pyroll Frte Ier \1 00 Office \ 15,000 \ 0.24 Dietary 10,000 0.31 Nurging 135,010 3.00

The payroll tax expense is recorded at the same time the payroll is recorded.

Which of the following does not apply to both a W-2 and W-3?

Information to prepare W-2 forms can be obtained from individual employee records.

The journal entry to record the estimated advance premium payment for workers' compensation is:

The information needed to make the journal entries to record the wages and salaries expense comes from:

Different deposit rules apply to employers based on the amount collected and owed by that employer.

FICA taxes are levied only on employees.

The debit amount to Payroll Tax Expense represents:

Which form contains information about gross earnings and is given to the employee by January 31?

An employer must always use a calendar year for payroll purposes.

A calendar quarter is made up of:

From the following data,calculate the estimate annual advance premium for workers' compensation insurance and record it in general journal form. Department Estimated Payroll Fate per 5100 Office \ 50,000 \ 9.24 Warehouge 40,000 1.40 Sales 75,000 0.90

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, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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