Question 1

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  True

Question 2

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  False

Question 3

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  True

Question 4

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 5

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

Accepted Answer

A) True 
 B)False

Question 6

The employee's earnings record provides information for each of the following except:

Accepted Answer

A)   completing Forms W-2.
B)   completing the journal entry to record the payroll.
C)   determining when the accumulated wages of an employee reach cutoff levels.
D)   preparing reports required by state unemployment compensation laws.
E)   preparing the payroll register.

Question 7

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 8

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 9

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 10

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 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 14

When recording the deposit of FUTA taxes owed,the proper entry is:

Accepted Answer

A)   FUTA Tax ExpenseCash
B)   Payroll TaxesCash
C)   Payroll TaxesFUTA Taxes Payable
D)   FUTA Taxes PayableCash
E)   FUTA Tax ExpenseFUTA Taxes Payable

Question 15

If employees must contribute to the state unemployment fund,this deduction should be shown in the payroll tax entry.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following items would require an adjusting entry at the end of each accounting period?

Accepted Answer

A)   Garnishment for child support payments
B)   Withholdings for a 401(k) plan
C)   Vacation pay earned by employees
D)   Union dues withheld
E)   None of the above

Question 17

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 18

The total of the net amount paid to employees each payday is credited to either the cash account or the salaries payable account.

Accepted Answer

A) True 
 B)False

Question 19

The entry to record the employer's payroll taxes usually includes credits to the liability accounts for FICA (OASDI and HI),FUTA,and SUTA taxes.

Accepted Answer

A) True 
 B)False

Question 20

Exhibit 6-1
The totals from the first payroll of the year are shown below.
​ $$\begin{array} { c c c c c c c } 
\text { Total } & \text { FICA } & \text { FICA } & \text { FIT } & \text { State } & \text { Union } & \text { Net } \
\text { Earnings } & \text { OASDI } & \text { HI } & \text { W/H } & \text { Tax } & \text { Dues } & \text { Pay } \
\$ 36,195.10 & \$ 2,244.10 & \$ 524.83 & \$ 6,515.00 & \$ 361.95 & \$ 500.00 & \$ 26,049.22 \
\hline
\end{array}$$ ​
-Refer to Exhibit 6-1.Journalize the entry to record the employer's payroll taxes (assume a SUTA rate of 3.7%).

Accepted Answer

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

Exam 6: Analyzing and Journalizing Payroll

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.

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%).

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

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

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

The employee's earnings record provides information for each of the following except:

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

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

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%).

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

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

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

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

When recording the deposit of FUTA taxes owed,the proper entry is:

If employees must contribute to the state unemployment fund,this deduction should be shown in the payroll tax entry.

Which of the following items would require an adjusting entry at the end of each accounting period?

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

The total of the net amount paid to employees each payday is credited to either the cash account or the salaries payable account.

The entry to record the employer's payroll taxes usually includes credits to the liability accounts for FICA (OASDI and HI),FUTA,and SUTA taxes.