Accounting 2 Exam

If the employee has $800 withheld from their check for federal income tax, what is the amount that the employer would need to pay for their portion of the federal income tax?

$0

Bob Stein's hourly wage is $45.00, and he worked 42 hours during the week. Assuming an overtime rate of time and a half over 40 hours, Bob's gross pay is:

$1,935

Bob Love earned $126,400 prior to the payroll period ending June 15. For the current payroll, Bob Love earned $5,000 and has the following deductions: FICA-OASDI (with a limit of $128,400), FICA-Medicare; federal income tax of $300; and state income tax $40. What is his net pay?

$4,463.50

Internal control over a company's assets should include the following procedures:

- all cash receipts will be deposited into the bank the same day they arrive - all cash payments will be made by check - responsibilities and duties of employees will be divided

What would the book value be at the end of year 6 for a piece of equipment using the straight-line method when cost is $11,000, residual value is $1,000, and the expected life is 10 years?

5,000

The May bank statement for legal services shows a balance of $6,000, but the book balance shows a cash balance of $7,680. Other information includes: 1. A check for $200 to pay the electric bill was recorded on the books as $20 2. Included on the bank statement was a note collected by the bank for $400 plus interest of $30 3. Checks outstanding totaled $260 4. Bank service charges were $50 5. Deposits in transit were $2,140 The adjusted cash balance at the end of May should be:

7,880

The May bank statement for Rental shows a balance of $6,300, but the balance per books shows a cash balance of $7,980. Other information includes:1. A check for $200 to pay the electric bill was recorded on the books as $20. 2. Included on the bank statement was a note collected by the bank for $400 plus interest of $30. 3. Checks outstanding totaled $260. 4. Bank service charges were $50. 5. Deposits in transit were $2,140. Which item(s) will require a journal entry to update the balance in the Cash account?

Bank service charges, note collected by the bank, and error made by Accounting Services

Both employees and employers pay which of the following taxes?

FICA taxes (OASDI and Medicare)

The May bank statement for Consulting Services shows a balance of $7300, but the balance per books shows a cash balance of $8,980. Other information includes: 1. A check for $200 to pay the electric bill was recorded on the books as $20.2. 2. Included on the bank statement was a note collected by the bank for $400 plus interest of $30.3. 3. Checks outstanding totaled $260.4. 4. Bank service charges were $50.5. Deposits in transit were $2,140. Which item should be subtracted from bank balance during the bank reconciliation?

Outstanding check

The May bank statement for Consulting Services shows a balance of $7300, but the balance per books shows a cash balance of $8,980. Other information includes:1. A check for $200 to pay the electric bill was recorded on the books as $20.2. Included on the bank statement was a note collected by the bank for $400 plus interest of $30.3. Checks outstanding totaled $260.4. Bank service charges were $50.5. Deposits in transit were $2,140.

Outstanding check

The employer's total FICA, SUTA, and FUTA tax is accounted for as:

a debit to Payroll Tax Expense

The bank statement included bank charges. On the bank reconciliation, this item is:

a deduction from the balance per company books.

A $100 petty cash fund has cash of $20 and valid receipts for $40. The entry to replenish the fund would include a:

debit to Over/Short for $40.

Sam's catering made a payment via check for $64 but it is incorrectly recorded on the books as $46. The $18 error should be shown on the bank reconciliation as:

deducted from the balance per bank statement.

The account for Payroll Tax Expense includes all of the following except:

federal income tax

The number of allowances claimed by an employee determines how much will be withheld from their paycheck for:

federal income tax.

Outstanding checks:

have not been processed by the bank for payment but have been subtracted in the checkbook.

What type of an account is Wages and Salaries Payable?

liability

The debit amount to Payroll Tax Expense represents:

the employer's portion of the payroll taxes