Question 1

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 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

A debit to the employees FIT payable account removes the liability for the amount of federal income taxes withheld from employees' wages.

Accepted Answer

A) True 
 B)False

Question 5

An employer will use the payroll register to keep track of an employee's accumulated wages.

Accepted Answer

A) True 
 B)False

Question 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.

Accepted Answer

A) True 
 B)False

Question 7

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 deposit the FICA and FIT taxes.

Accepted Answer

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

Question 8

If wages are paid weekly,postings to the employee's earnings record would be done once a month.

Accepted Answer

A) True 
 B)False

Question 9

FICA Taxes Payable-OASDI is a liability account debited for the employer's portion of the FICA tax.

Accepted Answer

A) True 
 B)False

Question 10

The FICA taxes on the employer represent both business expenses and liabilities of the employer.

Accepted Answer

A) True 
 B)False

Question 11

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 12

FIT Payable is a liability account used to record employees' withheld federal income tax and also the employer's match of that tax.

Accepted Answer

A) True 
 B)False

Question 13

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 14

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 15

The garnishment that takes priority over all others is :​

Accepted Answer

A)  ​a federal tax levy 
B)  ​a government student loan 
C)  ​a creditor garnishment 
D)  ​an administrative wage garnishment 
E)  ​a child support order

Question 16

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 adjustment for accrued wages for the following Monday,which is the end of the accounting period.The gross payroll for that day is $7,475.​

Accepted Answer

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

Question 17

Since vacation time is paid when used,there is no need to accrue this time in a liability account at the end of each accounting period.

Accepted Answer

A) True 
 B)False

Question 18

Companies usually provide a separate column in the payroll register to record the employer's payroll taxes.

Accepted Answer

A) True 
 B)False

Question 19

Tips received by employees in excess of tip credit amount are not included as disposable earnings subject to garnishment

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 6: Analyzing and Journalizing Payroll

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

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

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

A debit to the employees FIT payable account removes the liability for the amount of federal income taxes withheld from employees' wages.

An employer will use the payroll register to keep track of an employee's accumulated wages.

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.

If wages are paid weekly,postings to the employee's earnings record would be done once a month.

FICA Taxes Payable-OASDI is a liability account debited for the employer's portion of the FICA tax.

The FICA taxes on the employer represent both business expenses and liabilities 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.

FIT Payable is a liability account used to record employees' withheld federal income tax and also the employer's match of that tax.

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

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

The garnishment that takes priority over all others is :​

Since vacation time is paid when used,there is no need to accrue this time in a liability account at the end of each accounting period.

Companies usually provide a separate column in the payroll register to record the employer's payroll taxes.

Tips received by employees in excess of tip credit amount are not included as disposable earnings subject to garnishment

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

The garnishment that takes priority over all others is :