Chapter 9 & 11

Masonry Construction Group paid​ $10,000 for a plant asset that had a market value of​ $14,500. At which of the following amounts should the plant asset be​ recorded?

$10,000

​Tan's gross pay for the week is​ $1,500. His​ year-to-date pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is​ 6% and that​ Tan's year-to-date pay has previously exceeded the​ $7,000 cap. What is the amount of state and federal unemployment tax that his employer must record as payroll tax expense and pay to the federal and state​ governments?

0

Stone's gross pay for the week is​ $1,600. Stone's​ year-to-date pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is​ 6% and that​ Stone's year-to-date pay has not yet exceeded the​ $7,000 cap. What is the amount of state and federal unemployment tax that his employer must record as payroll tax expense and pay to the federal and state​ governments?

1,600* 6% =96.00

Anderson Corporation has purchased a group of assets for​ $20,300. The assets and their relative market values are listed below. Land ​$6,800 Equipment ​2,300 Building ​3,600 Which of the following amounts would be debited to the Land​ account? (Round any intermediate calculations to two decimal​ places, and your final answer to the nearest​ dollar.)

10,962

Hank earns​ $24.00 per hour with​ time-and-a-half for hours in excess of 40 per week. He worked 50 hours at his job during the first week of March 2018. Hank pays income taxes at​ 15% and​ 7.65% for OASDI and Medicare. All of his income is taxable under FICA. Determine​ Hank's net pay for the week.​ (Do not round any intermediate​ calculations, and round your final answer to the nearest​ cent.)

1021.02

Angie's gross pay for the week is​ $970.00. Her deduction for federal income tax is based on a rate of​ 20%. She has voluntary deductions of​ $220.00. Her​ year-to-date pay is under the limit for OASDI. What is the amount of FICA-Medicare Tax deducted from her​ pay? (Assume a FICA-OASDI Tax of​ 6.2% and FICA-Medicare Tax of​ 1.45%. Do not round any intermediate​ calculations, and round your final answer to the nearest​ cent.)

14.07

A​ $49,000, three-month,​ 12% note payable was issued on December​ 1, 2018. What is the amount of accrued interest on December​ 31, 2018?​ (Do not round any intermediate​ calculations, and round your final answer to the nearest​ dollar.)

49,000* 12% divided by 12 = 490

Which of the following deductions is paid by both the employer and​ employee?

FICA taxes

Which of the following taxes has a ceiling on the amount of annual earnings subject to​ tax?

FICA-OASDI tax

For the month of​ September, Seawide​ Sales, Inc. recorded gross pay of​ $74,500. The net pay for the month amounted to​ $59,500. The salaries are paid on October 5. Which of the following is the journal entry for the payment of​ salaries?

Salaries and Wages Payable ​59,500 Cash ​59,500

Angie Pereira and Ferro Schwartz are employees of Free​ Star, Inc. In February​ 2019, Angie's gross pay was​ $6,000, and​ Ferro's gross pay was​ $7,400. All earnings are subject to FICA-OASDI Tax of​ 6.2% and FICA-Medicare Tax of​ 1.45%. Which of the following would be included in the entry to record the salaries expense for​ February?

a credit to FICA-OASDI taxes payable for 830.80

The journal entry for accrued interest on a note payable includes​ ________.

a debit to interest expense and credit to interest payable

Mountain Valley​ Sales, Inc. has gross pay for March of​ $45,000. Which of the following is included in the journal entry to record salaries​ expense?

debit and wages expense

Which of the following is required to be deducted from​ employees' paychecks?

federal income tax

Which of the following is paid by the employer​ only?

federal unemployment tax

Which of the following is a characteristic of a plant​ asset, such as a​ building?

it is used in the operations of a business

Which of the following asset categories would include the cost of clearing land and removing unwanted​ buildings?

land

Which of the following accounts will be credited by the borrower when a promissory note is​ issued?

note payable

Westin Delivery​ Service, Inc. owns a delivery truck. Which of the following​ costs, associated with the​ truck, will be treated as a revenue​ expenditure?

oil change and lubrication

A​ ________ is a schedule that summarizes the​ earnings, withholdings, and net pay for each employee.

payroll register

The expected value of an asset at the end of its useful life is known as​ ________.

residual value

Which of the following depreciation methods always allocates a higher amount of depreciation in earlier years than in later​ years?

the double-declining-balance method

At the maturity of a note​ payable, a borrower will pay​ ________.

the principle plus interest

Which of the following depreciation methods allocate a varying amount of depreciation to expense each year based on an​ asset's usage?

the units-of-production method

Which of the following is a reason why many companies require a photo ID when employees pick up their​ paychecks?

to avoid writing a paycheck to a fictitious person

The cost of an asset is​ $1,070,000, and its residual value is​ $220,000. Estimated useful life of the asset is ten years. Calculate depreciation for the first year using the​ double-declining-balance method of depreciation.​ (Do not round any intermediate​ calculations, and round your final answer to the nearest​ dollar.)

year 1 (1,070,000 - 0) x2 x 1/10= 214,000