Question 1

Which of the following accounts is an expense account in which an employer records the FICA,FUTA,and SUTA taxes?

Accepted Answer

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

Question 2

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 3

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 4

Posting to the general ledger for payroll entries is done only at the end of each calendar year.

Accepted Answer

A) True 
 B)False

Question 5

When withheld union dues are turned over to the union by the employer,a journal entry is made debiting the liability account and crediting the cash account.

Accepted Answer

A) True 
 B)False

Question 6

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

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

Every state allows employers to make e-payment options as a condition of employment.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Exhibit 6-1
The totals from the first payroll of the year are shown below.
 
-Refer to Exhibit 6-1.Journalize the entry to deposit the FICA and FIT taxes.

Accepted Answer

The answer of Exhibit 6-1
The totals from the first payroll...

Question 11

The payroll taxes account is an expense account that is debited for the FICA,FUTA,and SUTA taxes on the employer.

Accepted Answer

A) True 
 B)False

Question 12

The entry made at the end of the accounting period to record wages incurred but unpaid is:

Accepted Answer

A)  Wages Expense
Wages Payable 
B)  Wages Expense
FICA Taxes Payable-OASDI
FICA Taxes Payable-HI
FIT Payable
Wages Payable 
C)  Wages Payable
Cash 
D)  Wages Expense
Cash 
E)  Wages Expense
Payroll Taxes
Wages Payroll

Question 13

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 14

The wage and salaries expense account is an operating expense account debited for total net pay each payroll period.

Accepted Answer

A) True 
 B)False

Question 15

Since the FUTA tax is a social security tax,it can be charged to the same expense account as the other payroll taxes on the employer,the payroll taxes account.

Accepted Answer

A) True 
 B)False

Question 16

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 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

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 19

Under the Uniform Unclaimed Property Act,any unclaimed paychecks must be turned over to the state after the next payday.

Accepted Answer

A) True 
 B)False

Question 20

Amounts withheld from employees' wages for health insurance are credited to a liability account.

Accepted Answer

A) True 
 B)False

Exam 6: Analyzing and Journalizing Payroll

Which of the following accounts is an expense account in which an employer records the FICA,FUTA,and SUTA taxes?

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

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%).

Posting to the general ledger for payroll entries is done only at the end of each calendar year.

When withheld union dues are turned over to the union by the employer,a journal entry is made debiting the liability account and crediting the cash account.

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

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

Every state allows employers to make e-payment options as a condition of employment.

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

Exhibit 6-1 The totals from the first payroll of the year are shown below. -Refer to Exhibit 6-1.Journalize the entry to deposit the FICA and FIT taxes.

The payroll taxes account is an expense account that is debited for the FICA,FUTA,and SUTA taxes on the employer.

The entry made at the end of the accounting period to record wages incurred but unpaid is:

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

The wage and salaries expense account is an operating expense account debited for total net pay each payroll period.

Since the FUTA tax is a social security tax,it can be charged to the same expense account as the other payroll taxes on the employer,the payroll taxes account.

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

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.

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

Under the Uniform Unclaimed Property Act,any unclaimed paychecks must be turned over to the state after the next payday.

Amounts withheld from employees' wages for health insurance are credited to a liability account.