Accounting Test 3

Brian temples cumulative earnings are $73,000 and his gross pay for the week is $5,300. If the FICA rates are OASDI 6.2% on a limit of $106,800 and Medicare is 1.45%. What are his FICA-OASDI and FICA-Medicare taxes for the week?

$328.60; $76.85

which taxes are considered 941 taxes?

FICA and FIT

a pay period is defined as: A weekly B bi-weekly C monthly D all of the above are correct

all of the above are correct

the information needed to make the journal entries to record wages and salaries expense comes from A form W-2 B the look- back period C the payroll register D form 941

the payroll register

net pay is equal to gross pay less deductions: A true B false

true

Carrie Stein's hourly wage is $40 and she worked 42 hours during the week assuming overtime rate of time-and-a-half over 40 hours carries gross pay is:

$1,720

as the prepaid workers compensation is recognized, the amount will transfer to: A Workers Compensation Insurance payable B Workers Compensation Insurance expense C Cash D Payroll tax expense

Workers Compensation Insurance expense

credit terms of 1/10, n/30 mean that:

a 1% discount is allowed if the customer pays the bill within 10 days, or the entire amount is due within 30 days

Sue's jewelry sold 30 necklaces for $25 each to a credit customer. The invoice included a 6% sales tax and payment terms of 2/10, n/30. In addition, five necklaces were returned prior to payment. The entry to record the payment would include

a credit to accounts receivable for $662.50

the normal balance of the sales returns and allowances account is:

a debit

Great Lakes tutoring had the following payroll information on February 28th: employee R Hill: gross pay $4,000 cumulative earnings prior to this payroll $4,000 Assume FICA tax rate are OASDI 6.2% on a limit of $106,800 and Medicare 1.45% State unemployment tax rate is 2% on the first $7,000 federal unemployment tax rate is 8% on the first $7,000 using the information above the journal entry to record the payroll tax expense for Great Lakes tutoring would include: A a debit to payroll tax expense in the amount of B $390 a credit to futa payable for $24 C a credit to suta payable for $60 D all of the above are correct

all of the above are correct

Prepaid Workers Compensation Insurance is what type of account A asset B expense C liability D revenue

asset

the Contra-Revenue accounts include: A sales tax payable B sales returns and allowances C sales discount D both B and C are correct

both B and C are correct

Grammy's Bakery had the following information for the pay period ending in June 30: employee named P gangster: pay rate $2,000 hours worked salaried cumulative earnings $12,000 Department kitchen federal income tax withheld $86 employee named T Baker: pay rate $10 an hour hours worked 50 cumulative earnings $6,500 Department office federal income tax withheld $22 assume: FICA-OASDI applied to the first $106,800 at a rate of 6.2% FICA Medicare applied at a rate of 1.45% fruit fly to the first $7,000 at a rate of 8% to apply to the first $7,000 at a rate of 5.6% state income tax is 3.8% Given the above information what would be the amount applied to office salaries expense A debit $550 B credit $550 C debit $500 D credit $500

debit $550

Lisa's blankets and bedding had a sale $350 to charge customer terms 1/15, n/30 Lisa should record this transaction as follows

debit accounts receivable $350; credit sales $350

Secret Trails received payment in full within the credit period for horse boarding for $900 plus 6% sales tax. Terms of the sale were 2/10, n/30 . Which entry is required to record this payment?

debit cash, $936; debit sales discount $18; credit accounts receivable, $954

the time frame when customers are allowed to pay their bills and still be eligible for Discount is the:

discount period

a summary record of each person's earnings, deductions, and net pay is called a(n): A payroll register B W-4 C employee individual earnings record D general journal

employee individual earnings record

which of the following does not apply to both a W-2 and w-3? A report the total amount of wages tips and compensation paid to the employee B reports the total OASDI and Medicare taxes withheld C sent to the Social Security Administration D employees use both forms to prepare their personal tax returns

employees use both forms to prepare their personal tax returns

what type of account is payroll tax expense? A) asset B) liability C) Revenue D) expense

expense

the number of allowances claimed by an employee determines how much will be withheld from their paycheck for: A FICA-OASDI B FICA-Medicare C federal income tax D all of these answers are correct

federal income tax

net pay equals: a) gross pay less all deductions b) regular earnings plus overtime earnings c) gross earnings d) net earnings plus overtime earnings greater than the amount withheld from the employee

gross pay less all deductions

what is debited if State unemployment tax payable (suta) is credited A payroll tax expense B cash C salaries payable D salaries expense

payroll tax expense

Merchant to buy goods from wholesalers for resale to customers are:

retailers

merchandise sold on credit was returned for credit and recorded with a debit to sales returns and allowances and a credit to accounts payable. This error will cause:

the assets to be overstated

under the fair labor standards act, for any hours that an employee works over 40 during a work week:

the employees paid time and a half