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

Record in the general journal the payroll tax entry for the week ended August 31. Use the following information gathered to make the entry. a)FICA tax rate is: OASDI 6.2% on a limit of $106,800, and Medicare is 1.45% b)Federal Unemployment is 0.8% on a limit of $7,000 c)State Unemployment is 2% on a limit of $7,000

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). -

Kristi's Mentoring had the following information for the pay period ending September 30: 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 net pay. ________

The entry to record the payroll tax expense would include:

Which of the following statements is false?

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). -

A calendar quarter is made up of:

FIT Payable has a credit normal balance.

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

The employer's total FICA, SUTA, and FUTA tax is recorded as:

Great Lakes Tutoring had the following payroll information on February 28: Assume: FICA tax rates are: OASDI 6.2% on a limit of $106,800 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 Great Lakes Tutoring would include:

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 940 is filed annually.

FUTA taxes are paid:

Why would a company use a separate payroll cash account?

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

Kristi's Mentoring had the following information for the pay period ending September 30: 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 employees' FICA-OASDI. ________

Compute the employers payroll tax. ________

Using the information provided below, prepare a journal entry to record the payroll tax expense for Mr. B's Carpentry. Assume: FICA tax rates are: OASDI 6.2% on a limit of $106,800 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.

As the Prepaid Workers Compensation is recognized, the amount will transfer to:

Prepaid Worker's Compensation Insurance is what type of account?