Question 1

In recording the monthly adjusting entry for accrued wages at the end of the accounting period, the amount of the adjustment would usually be determined by:

Accepted Answer

A)  collecting the timesheets for the days accrued.
B)  using the same amount as the prior month's adjustment.
C)  using the wages of the salaried workers only.
D)  a percentage of the previous week's gross payroll.
E)  a percentage of the previous week's net payroll. D

Question 2

Each payday, the total of net pays that the employer incurs is the wage expense that must be debited.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following is not an expense of the employer?

Accepted Answer

A)  FUTA tax
B)  FICA tax-HI
C)  FICA tax-OASDI
D)  SUTA tax
E)  Union dues withheld E

Question 4

In the adjusting entry to accrue wages at the end of the accounting period, there is no need to credit any tax withholding accounts.

Accepted Answer

A) True 
 B)False

Question 5

Deductions from gross pay in the payroll register are reflected on the credit side of the journal entry to record the payroll.

Accepted Answer

A) True 
 B)False

Question 6

Carmen Gaetano worked 46 hours during this payweek.He is paid time-and-a-half for hours over 40 and his pay rate is $17.90/hour.What was his overtime premium pay for this workweek?

Accepted Answer

A)  $107.40
B)  $161.10
C)  $50.70
D)  $53.70
E)  $26.85

Question 7

Service charges that are passed on to the employee by the employer are not part of the disposable earnings subject to garnishment.

Accepted Answer

A) True 
 B)False

Question 8

Which of these accounts shows the total gross earnings that the employer incurs as an expense each payday?

Accepted Answer

A)  Payroll Taxes
B)  Federal Income Taxes Payable
C)  Wages Expense
D)  Salaries Payable
E)  None of the above

Question 9

Once the journal entry for the payroll is complete, the information is posted to the appropriate general ledger accounts.

Accepted Answer

A) True 
 B)False

Question 10

FUTA Taxes Payable is an expense account in which are recorded the employer's federal unemployment taxes.

Accepted Answer

A) True 
 B)False

Question 11

At the time that the entry is made to record the employer's payroll taxes, the SUTA tax is recorded at the net amount 0.6%).

Accepted Answer

A) True 
 B)False

Question 12

Under the provisions of the Consumer Credit Protection Act, an employer can discharge an employee simply because the employee's wage is subject to garnishment for a single indebtedness.

Accepted Answer

A) True 
 B)False

Question 13

Tax withholdings from employees' pays reduce the amount of the debit to Salary Expense in the payroll entry.

Accepted Answer

A) True 
 B)False

Question 14

The FUTA tax part of the payroll tax entry is recorded at the net amount 0.6%) of the taxable payroll.

Accepted Answer

A) True 
 B)False

Question 15

Since FUTA tax is paid only once a quarter, the FUTA tax expense is recorded only at the time of payment.

Accepted Answer

A) True 
 B)False

Question 16

The payroll taxes incurred by an employer are FICA, FUTA, and SUTA.

Accepted Answer

A) True 
 B)False

Question 17

When the federal tax deposit is made, the employees' and employer's shares of FICA taxes are paid along with the employees' FIT taxes withheld.

Accepted Answer

A) True 
 B)False

Question 18

The employer's payroll tax expenses are recorded by all employers at the time these taxes are actually paid.

Accepted Answer

A) True 
 B)False

Question 19

Since the credit against the FUTA tax for SUTA contributions) is made on Form 940, the employer's payroll tax entries should include the FUTA tax at the gross amount 6.0%).

Accepted Answer

A) True 
 B)False

Question 20

Under the Consumer Credit Protection Act, disposable earnings are the earnings remaining after any deductions for health insurance.

Accepted Answer

A) True 
 B)False

Exam 6: Analyzing and Journalizing Payroll

In recording the monthly adjusting entry for accrued wages at the end of the accounting period, the amount of the adjustment would usually be determined by:

Each payday, the total of net pays that the employer incurs is the wage expense that must be debited.

Which of the following is not an expense of the employer?

In the adjusting entry to accrue wages at the end of the accounting period, there is no need to credit any tax withholding accounts.

Deductions from gross pay in the payroll register are reflected on the credit side of the journal entry to record the payroll.

Carmen Gaetano worked 46 hours during this payweek.He is paid time-and-a-half for hours over 40 and his pay rate is $17.90/hour.What was his overtime premium pay for this workweek?

Service charges that are passed on to the employee by the employer are not part of the disposable earnings subject to garnishment.

Which of these accounts shows the total gross earnings that the employer incurs as an expense each payday?

Once the journal entry for the payroll is complete, the information is posted to the appropriate general ledger accounts.

FUTA Taxes Payable is an expense account in which are recorded the employer's federal unemployment taxes.

At the time that the entry is made to record the employer's payroll taxes, the SUTA tax is recorded at the net amount 0.6%).

Under the provisions of the Consumer Credit Protection Act, an employer can discharge an employee simply because the employee's wage is subject to garnishment for a single indebtedness.

Tax withholdings from employees' pays reduce the amount of the debit to Salary Expense in the payroll entry.

The FUTA tax part of the payroll tax entry is recorded at the net amount 0.6%) of the taxable payroll.

Since FUTA tax is paid only once a quarter, the FUTA tax expense is recorded only at the time of payment.

The payroll taxes incurred by an employer are FICA, FUTA, and SUTA.

When the federal tax deposit is made, the employees' and employer's shares of FICA taxes are paid along with the employees' FIT taxes withheld.

The employer's payroll tax expenses are recorded by all employers at the time these taxes are actually paid.

Since the credit against the FUTA tax for SUTA contributions) is made on Form 940, the employer's payroll tax entries should include the FUTA tax at the gross amount 6.0%).

Under the Consumer Credit Protection Act, disposable earnings are the earnings remaining after any deductions for health insurance.