Final Chapter 6

Accrual; reversed

At the end of the financial period, the payroll accountant records the _____________ of the employee?s pay that is earned but not yet paid; in the next financial period, this entry is _______________.

Employee earnings record

How does a payroll accountant keep track of employee's year-to-date earnings for wage bases on taxes like FICA, FUTA, and SUTA?

It should create a reversing entry in the General Journal.

If a firm accrues the payroll due but not paid at the end of a financial period, what should it do on the first day of the next financial period?

$1,551,383.86

In the following payroll transaction, what is the amount of the net pay? (Click on the image to view it.)

The same as the chart of accounts

In what order are accounts presented on the trial balance?

Chronologically

In which order are transactions listed in the General Journal?

Debit Cash, $250,000; Credit R. Sanders Capital, $250,000

On December 1, 20XX, Riley Sanders invested $250,000 to open Sanders Enterprises. What is the General Journal entry to record this transaction?

The income statement

On which financial report will employer-paid portions of health insurance premiums be listed?

Employee earnings record General Journal Labor reports

Select All that Apply: To which items is information from the payroll register transferred? Employee earnings record General Journal Labor reports Company website

FUTA, SUTA

Select All that Apply: Which columns might an employer include to facilitate employer-share payroll tax General Journal entries? Worker's Compensation FUTA SUTA Employer's Federal Income tax

Balance sheet

The _________________ reflects all unpaid payroll liabilities at any point in the financial period.

It is a worksheet that accountants use to ensure payroll accuracy.

Which of the following best describes the purpose of the payroll register?

Salaries Payable

Which of the following is an example of a liability account?

Cash

Which of the following is an example of an asset account?

It must remain in balance at all times.

Which of the following is true about the fundamental accounting equation?

Credit $49,485

Enchanted Creations has the following data in its Federal withholding tax payable General Ledger account: What is the balance of the account as of April 30? (Click on the image to view it.)

False

True or False: A debit always decreases the balance of an account.

False

True or False: In the General Ledger, the debit column reflects the balance of the account.

True

True or False: The General Journal contains records of a firm's financial transactions, which appear chronologically.

True

True or False: The information in the payroll register forms the basis for entries in the Employee Earnings Records and the General Journal.

True

True or False: The purpose of the net pay and check number columns in the payroll register is to verify accurate disbursal of payroll.

True

True or False: Two complete payroll-related General Journal entries are recorded each pay period: one for the employees' payroll, one for the employer's share of the taxes.

Posting

What is the term for transferring data from the General Journal to the General Ledger?

It must create an adjusting entry to recognize the payroll accrual.

When a firm has wages earned but not yet paid at the end of a financial reporting period, what must it do to recognize the liabilities and expenses?