Accounting Chapter 13
The salaries Expense account has a normal ____ balance
Debit
The form that is prepared and sent with the employer's check to show the amount of federal payroll taxes being sent to the federal government is a ___
Federal tax deposit coupon
The wage and tax statement that summarizes an employee's earnings and tax deductions for the previous calendar year is called
W-2
The transmittal of wage and tax statements that is filed by the employer the IRS is called
W-3
An increase in SUTA payable would be a
credit
An increase in the SUTA payable account is recorded as a
credit
THe Medicare tax payable account would normally have a ___ balance
credit
The MC Tax Payable account has a normal ____ balance
credit
The account Employees' Federal Income Tax Payable has a normal _________ balance.
credit
The total amount of net pay of all employees is entered on the __ side of the C in B account
credit
The total net pay for the period is entered on the ___ of the C in B account
credit
the account, Insurance Premiums Payable would have a ___ normal balance
credit
Salaries expense would normally have a ___ balance
debit
The Payroll Tax Expense account has a normal ___ balance
debit
The payroll tax expense account normally has a __ balance
debit
The total amount of gross earnings is entered on the __ side of the salaries expense account
debit
When a payment is made to the federal government for the employees' fed income tax payable account
debit
When a payment is made to the state gov for the employees' state income tax, an entry is made on the __ side of the Employees' State Income Tax Payable account
debit
a decrease in Savings bonds payable would be a __
debit
An employer is required to file only an annual tax report on the employer
false
C in B account is debited for the amount the employees actually earn in the pay period
false
FUTA are withheld from employees' earnings
false
Federal withholding taxes and soc. sec. taxes are normally paid once a year by the employer
false
Form W-2 must be prepared & given to each employee by Jan 31 of the year following that in which the taxes were deducted
false
The Unemployment Tax Payable account is used to record both federal and state unemployment taxes
false
The W-3 form reports state unemployment taxes
false
The amount entered for Payroll Tax Expense is the total gross earnings of the pay period
false
The entry for Salaries Expense is recorded each pay period by the entry for Payroll Tax Expense is recorded only at the end of the year
false
The only taxes that the employer must pay are SUTA and FUTA
false
When a business transfers money from its regular checking account to the payroll checking account, the check is written for the amount of gross earnings
false
amounts withheld from gross earnings and held by the employer until the time of payment are assets of the business
false
employees wages are a liability of the business
false
Amounts deducted from employees' earnings and held for payment by the employer become liabilities to the business.
true
Both the employee and the employer pay the same rate for social security and Medicare taxes
true
The C in B account is credited for the total amount that is paid by the employer to the employees
true
The SS tax is paid by both the employer and employees.
true
The Salaries Expense account records employees' gross earnings
true
The W-2 must be prepared and given to each employee by Jan 31 of the year following that in which the taxes were deducted
true
The W-2 statement reports individual employee earnings
true
The employer pays the employer's and employees' share of FiCA taxes in one payment
true
The employer pays the same amount of FiCA tax as employees
true
The employer's payroll taxes are operating expenses of the business
true
The employer's payroll taxes are recorded as liabilities to be paid in the future
true
The employer's payroll taxes are recorded in the Payroll Tax Expense account
true
The info on the employer's quarterly federal tax return matches info in the payroll register for the same period
true
The payroll register is the source of info for preparing the journal entry for payroll
true
The taxes that an employer must pay are FICA and Unemployment
true
the salary expense of a business is equal to the total gross earnings
true
___ are usually paid only by the employer and collected to provide funds for workers who are temporarily out of work
unemployment taxes
___ is the tax return that includes federal unemployment taxes paid by the employer during the year
940
The document that reports the accumulated amounts of federal income taxes and FICA taxes withheld from employees' earnings for the quarter is
941
The Federal Tax Deposit Coupon shows employes' voluntary deductions
False
