Question 1

Instructions
Compute Banner's payroll tax expense for the year. Make a summary journal entry to record the payroll tax expense.

Accepted Answer

The answer of Instructions
Compute Banner's payroll tax expense for the...

Question 2

The journal entry to record the payroll for a period will include a credit to Salaries and Wages Payable for the gross

Accepted Answer

A)  amount less all payroll deductions. 
B)  amount of all paychecks issued. 
C)  pay less taxes payable. 
D)  pay less voluntary deductions.

Question 3

Which of the following employees would likely receive a salary instead of wages?

Accepted Answer

A)  Store clerk 
B)  Factory employee 
C)  Sales manager 
D)  Manual laborer

Question 4

An employee earnings record is a cumulative record of each employee's gross earnings, deductions, and net pay during the year.

Accepted Answer

A) True 
 B)False

Question 5

Match between columns
                        Premises: Supervisor approves hours worked.
Posting job openings.
Distribution of checks by the treasurer.
Signing prenumbered payroll checks.
Use of a timeclock.
Screening and interviewing of job applicants.
Employment authorization.
Documentation of employee hiring.
Employee signs receipt acknowledging cash received.
Payroll taxreturn preparation.
Maintenance of payroll records.
Verification of payroll calculations.

Accepted Answer

The Answer of PRE =Preparing the Payroll and PAY= Paying is...

Question 6

FICA taxes do not provide workers with

Accepted Answer

A)  life insurance. 
B)  supplemental retirement. 
C)  employment disability. 
D)  medical benefits.

Question 7

Internal control over payroll is not necessary because employees will complain if they do not receive the correct amount on their payroll checks.

Accepted Answer

A) True 
 B)False

Question 8

Most companies are required to compute overtime at

Accepted Answer

A)  the worker's regular hourly wage. 
B)  1.25 times the worker's regular hourly wage. 
C)  1.5 times the worker's regular hourly wage. 
D)  2.5 times the worker's regular hourly wage.

Question 9

A payroll tax expense which is borne entirely by the employer is the federal _______________ tax.

Accepted Answer

The answer of A payroll tax expense which is borne...

Question 10

Assuming a FICA tax rate of 7.65% on the first $117,000 in wages and 1.45% in excess of $117,000 and a federal income tax rate of 20% on all wages, what would be an employee's net pay for the year if he earned $180,000? Round all calculations to the nearest dollar.

Accepted Answer

A)  $134,867 
B)  $133,953 
C)  $144,000 
D)  $134,136

Question 11

The effective federal unemployment tax rate is usually

Accepted Answer

A)  6.2%. 
B)  0.8%. 
C)  5.4%. 
D)  8.0%.

Question 12

FICA taxes and federal income taxes are levied on employees' earnings without limit.

Accepted Answer

A) True 
 B)False

Question 13

By January 31 following the end of a calendar year, an employer is required to provide each employee with a(n)

Accepted Answer

A)  state unemployment tax form. 
B)  federal unemployment tax form 940. 
C)  wage and tax statement form W-2. 
D)  employee's withholding allowance certificate form W-4.

Question 14

Jerri Rice has worked 44 hours this week. She worked at least 8 hours each day. Her regular hourly wage is $12 per hour with one and one-half times her regular rate for any hours which exceed 40 hours per week. What are Jerri's gross wages for the week?

Accepted Answer

A)  $528 
B)  $552 
C)  $792 
D)  $576

Question 15

A good internal control feature is to have several employees choose one person to punch all of their time cards.

Accepted Answer

A) True 
 B)False

Question 16

The form showing gross earnings, FICA taxes withheld, and income taxes withheld for the year is

Accepted Answer

A)  Form W-4. 
B)  Form W-2. 
C)  Form 1040. 
D)  Schedule A.

Question 17

Sam Geller had earned (accumulated) salary of $110,000 through November 30. His December salary amounted to $9,800. Lara Lane began employment on December 1 and will be paid her first month's salary of $7,000 on December 31. Income tax withholding for December for each employee is as follows:  Instructions
Record the payroll for the two employees at December 31 and record the employer's share of payroll tax expense for the December 31 payroll. Round all calculations to the nearest dollar.

Accepted Answer

The answer of Sam Geller had earned (accumulated) salary of...

Question 18

Match between columns
                        Premises: A payroll tax expense levied only against the employer based on employees' wages.
Levied against employees' wages with a maximum limit.
Gross earnings less payroll deductions.
A form showing gross earnings and income taxes withheld.
Levied against employees' wages without limit.

Accepted Answer

The Answer of Federal income taxes and Federal unemployment taxes is...

Question 19

Warren Company's payroll for the week ending January 15 amounted to $200,000 for salaries and wages. None of the employees has reached the earnings limits specified for federal or state employer payroll taxes. The following deductions were withheld from employees' salaries and wages:  Federal unemployment tax (FUTA) rate is 6.2% less a credit equal to the rate paid for state unemployment taxes. The state unemployment tax (SUTA) rate is 5.4%.
Instructions
Prepare the journal entries to record the weekly payroll ending January 15 and also the employer's payroll tax expense on the payroll.

Accepted Answer

The answer of Warren Company's payroll for the week ending...

Exam 16: Specimen Financial Statements: the Coca-Cola Company

Instructions Compute Banner's payroll tax expense for the year. Make a summary journal entry to record the payroll tax expense.

The journal entry to record the payroll for a period will include a credit to Salaries and Wages Payable for the gross

Which of the following employees would likely receive a salary instead of wages?

An employee earnings record is a cumulative record of each employee's gross earnings, deductions, and net pay during the year.

Match the codes assigned to the following payroll functions to the procedures listed below:

FICA taxes do not provide workers with

Internal control over payroll is not necessary because employees will complain if they do not receive the correct amount on their payroll checks.

Most companies are required to compute overtime at

A payroll tax expense which is borne entirely by the employer is the federal _______________ tax.

Assuming a FICA tax rate of 7.65% on the first $117,000 in wages and 1.45% in excess of $117,000 and a federal income tax rate of 20% on all wages, what would be an employee's net pay for the year if he earned $180,000? Round all calculations to the nearest dollar.

The effective federal unemployment tax rate is usually

FICA taxes and federal income taxes are levied on employees' earnings without limit.

By January 31 following the end of a calendar year, an employer is required to provide each employee with a(n)

Jerri Rice has worked 44 hours this week. She worked at least 8 hours each day. Her regular hourly wage is $12 per hour with one and one-half times her regular rate for any hours which exceed 40 hours per week. What are Jerri's gross wages for the week?

A good internal control feature is to have several employees choose one person to punch all of their time cards.

The form showing gross earnings, FICA taxes withheld, and income taxes withheld for the year is

Match the items below by entering the appropriate code letter in the space provided.