chapter 10 quizzes (fall 2014, fall 2017, spring 2018, fall 2015)

The law requires ______ to pay FICA taxes. a. both employee and employer b. the employee c. the employer d. only retailers

a. both employee and employer

look at question 1 on fall 2014 quiz

do Ittt

Employers: a. Withhold employee's federal income taxes b. Pay unemployment taxes to the federal and state governments c. Pay FICA taxes in equal amount to the FICA taxes withheld from the employees d. Withhold employees' FICA taxes e. All of the above

e. All of the above

Geez Company issued a $20,000 note to the Regional Bank on August 1, 2013. The note carried a one-year term and a 12% rate of interest. The adjusting entry on Geez's books to record accrued interest expense on December 31, 2013 will a. Increase liabilities and decrease equity by $800. b. Decrease equity and increase liabilities by $2,400. c. Decrease assets and decrease retained earnings by $1,000. d. Decrease assets and decrease liabilities by $1,000. e. Decrease equity and increase liabilities by $1,000.

e. Decrease equity and increase liabilities by $1,000.

Happy Flights collects $300 for a roundtrip ticket from Charlotte to Phoenix. The flights will not occur until the next accounting period. How does Happy Flights record the $300 collected in advance? a. A debit to Cash of $300 and a credit to Unearned Revenue of $300 b. A debit to Unearned Revenue of $300 and a credit to Cash of $300 c. A debit to Cash of $300 and a credit to Revenue of $300 d. A debit to Revenue of $300 and a credit to Cash of $300

a. A debit to Cash of $300 and a credit to Unearned Revenue of $300

If a company's gross salaries and wages are $36,000, and it withholds $5,400 for income taxes and $2,754 for FICA taxes, the journal entry to record the employees' pay should include a: a. credit to Cash for $27,846. b. debit to Salaries and Wages Expense for $27,846. c. debit to Cash for $27,846. d. credit to Cash for $36,000.

a. credit to Cash for $27,846. **** idk if this is right

On September 1, Roberts Consulting borrowed $66,000 on a 6%, 9 month note payable to the Bank of Alabama. Given no previous adjusting entries have been recorded, Roberts's adjusting entry four months later at December 31 would include a: a. debit to interest expense of $1,320 b. debit to interest expense of $3,960 c. debit to interest expense of $2,970 d. debit to interest expense of $990

a. debit to interest expense of $1,320

When a company collects sales tax from a customer at the point of sale, the event is recorded by: a. A debit to Sales Tax Expense and a credit to Sales Tax Payable. b. A debit to Cash and a credit to Sales Tax Payable. c. A debit to Sales Tax Payable and a credit to Sales Tax Expense. d. A debit to Cash and a credit to Sales Tax Revenue. e. A debit to Sales Tax Payable and a credit to Cash.

b. A debit to Cash and a credit to Sales Tax Payable.

On October 1, 2015, Junk Inc. borrows $213,000 on a three-year note that requires the company to pay 8% interest on March 31 and September 30. On December 31, 2015, the adjusting entry to accrue interest on the note should debit: a. Interest Payable and credit Interest Expense for $4,260. b. Interest Expense and credit Interest Payable for $4,260. c. Interest Expense and credit Cash for $8,520. d. Interest Expense and credit Interest Payable for $8,520. e. Interest Expense and credit Interest Payable for $17,040.

b. Interest Expense and credit Interest Payable for $4,260.

A company pays $18,000 in interest on notes, consisting of $12,000 interest that was accrued during the last accounting period and $6,000 of interest that accumulated during the current accounting period but has not yet been accrued on the books. The journal entry for the interest payment should: a. debit Interest Payable for $12,000, debit Accrued Interest $6,000 and credit Cash for $18,000 b. debit Interest Expense for $6,000, debit Interest Payable $12,000 and credit Cash for $18,000 c. debit Cash for $18,000 and credit Interest Payable for $18,000 d. debit Interest Expense for $18,000 and credit Cash for $18,000

b. debit Interest Expense for $6,000, debit Interest Payable $12,000 and credit Cash for $18,000

Unearned revenues are liabilities because: a. no cash has changed hands. b. goods or services have been paid for, but not yet provided to the customer. c. the company is transferring them to another period for tax reasons. d. the customer may someday return items purchased for a refund.

b. goods or services have been paid for, but not yet provided to the customer.

John Zebu is the only employee of Atlantic Records, Inc. During the first week of January, Zebu earned $1,200.00 and had federal and state income tax withholdings of $60.00 and $22.50, respectively. FICA taxes are 7.65 % on earnings up to $117,000, or $91.80. State and federal unemployment taxes for the period are $75.00 and $12.00, respectively. What would be the amount of Zebu's payroll check for the first week of January? a. $1,200.00 b. $1,108.20 c. $1,025.70 d. $938.70 e. $933.90

c. $1,025.70

Michele Smith is the only employee of Red Trucking. During the first week of January, Smith earned $3,000.00 and had federal and state income tax withholdings of $150.00 and $56.25, respectively. FICA taxes are 7.65 % on earnings up to $117,000. State and federal unemployment taxes for the period are $187.50 and $30.00, respectively. What would be the amount of Smith's payroll check for the first week of January? a. $2,346.75 b. $3,000.00 c. $2,564.25 d. $2,770.50

c. $2,564.25

Trickster Travel, Inc. borrowed $500,000 on November 1, 2017, and signed a twelve-month note bearing interest at 6% per year. Principal and interest are payable in full at maturity on October 31, 2016. No entries have yet been made in 2017 with respect to the note. In connection with this note, Trickster Travel, Inc. should report interest payable at December 31, 2017, in the amount of: a. $8,000. b. $30,000. c. $5,000. d. $25,000.

c. $5,000.

During one pay period, your company distributes $132,000 to employees as net pay. The income tax withholdings from employee wages were $19,300 and the FICA withholdings from employee wages were $8,945. Total payroll costs (total payroll expense) to the company for this pay period, excluding any unemployment taxes, was: a. $178,135. b. $151,300. c. $160,245. d. $169,190.

d. $169,190.

The Table & Supply Company makes a sale for $390. The company is required to collect sales taxes amounting to 10%. What is the amount that will be credited to the Sales Tax Payable account? a. $43 b. $35 c. $195 d. $39

d. $39

Bobby Darling is the only employee of Atlantic Records, Inc. During the first week of January, Darling earned $1,000.00 and had federal and state income tax withholdings of $50.00 and $18.75, respectively. FICA taxes are 7.65 % on earnings up to $117,000. State and federal unemployment taxes for the period are $62.50 and $10.00, respectively. What would be the amount of Darling's payroll check for the first week of January? a. $923.50 b. $1,000.00 c. $782.25 d. $854.75

d. $854.75

Which of the following represents the correct journal entry to record a taxable cash sale of a product with a sales price of $800 if the sales tax rate is 5%? a. A debit to cash for $800, a credit to sales tax payable for $40, and a credit to sales revenue for $760. b. A debit to cash for $840, a debit to sales tax expense for $40, and a credit to sales revenue for $800. c. A debit to cash for $840, a credit to sales tax revenue for $40, and a credit to sales revenue for $800. d. A debit to cash for $840, a credit to sales revenue for $800, and a credit to sales tax payable for $40.

d. A debit to cash for $840, a credit to sales revenue for $800, and a credit to sales tax payable for $40.

What kind of account is Unearned Revenue? a. A revenue account on the income statement b. A revenue account on the balance sheet c. A liability on the income statement d. A liability on the balance sheet

d. A liability on the balance sheet

Payroll taxes paid by employees include which of the following? a. Federal income tax, federal unemployment tax, and Medicare b. Social security, federal unemployment tax, and state unemployment tax c. Social security, federal income tax, and federal unemployment tax d. Federal income tax withheld, state income tax withheld, and Medicare

d. Federal income tax withheld, state income tax withheld, and Medicare

Which of the following are payroll taxes that are paid by employees? a. Federal income tax, federal unemployment tax, and Medicare b. Social security, federal unemployment tax, and state unemployment tax c. Social security, federal income tax, and federal unemployment tax d. Federal income tax withheld, state income tax withheld, and Medicare

d. Federal income tax withheld, state income tax withheld, and Medicare

On October 1, 2015, Attra Inc. borrows $209,000 on a three-year note that requires the company to pay 8% interest on March 31 and September 30. On December 31, 2015, the adjusting entry to accrue interest on the note should debit: a. Interest Expense and credit Cash for $8,360. b. Interest Expense and credit Interest Payable for $8,360. c. Interest Payable and credit Interest Expense for $4,180. d. Interest Expense and credit Interest Payable for $4,180.

d. Interest Expense and credit Interest Payable for $4,180.

Mickey Inc. is planning to issue $1,000 bonds with a stated interest rate of 7% and a maturity date of July 15, 2022. If interest rates rise in the economy so that similar financial investments in the market pay 8%, the bonds will sell: a. at face value. b. at maturity value. c. at a premium. d. at a discount.

d. at a discount.

If a company's gross salaries and wages are $48,000, and it withholds $7,200 for income taxes and $3,672 for FICA taxes, the journal entry to record the employees' pay should include a: a. credit to Salaries and Wages Payable for $48,000 b. debit to Salaries and Wages Payable for $37,128 c. debit to Salaries and Wages Expense for $37,128 d. credit to Salaries and Wages Payable for $37,128

d. credit to Salaries and Wages Payable for $37,128

On February 3, 2014, the Delusional Hotel books and accepts a cash payment for $6,000 for vacation services to be provided during spring break in April. The $6,000 would be recorded on February 3, 2014 as a: a. debit to Accounts Payable and a credit to Service Revenue. b. debit to Cash and a credit to Service Revenue. c. credit to Accounts Receivable and a credit to Service Revenue. d. credit to Unearned Revenue and a debit to Cash. e. credit to Service Revenue and a debit to Unearned Revenue.

d. credit to Unearned Revenue and a debit to Cash.

The Payroll records of Oregon Mist contained the following information for the month of November: Salaries $350,000 FICA Taxes - Employee 21,700 FICA Taxes - Employer 21,700 Federal Unemployment Taxes 3,500 State Unemployment Taxes 1,750 The journal entry to record the employer's monthly Payroll Tax Expense would include a: a. debit to Payroll Tax Expense of $25,200. b. credit to FICA Taxes Payable of $43,400. c. debit to Payroll Tax Expense of $48,650. d. debit to Payroll Tax Expense of $26,950.

d. debit to Payroll Tax Expense of $26,950.

On January 5, 2017, the Dream Resort books and accepts a cash payment for $32,000 for vacation services to be provided during spring break in March. The journal entry that will be made in March after the services are provided will include a: a. debit to Accounts Payable and a credit to Service Revenue. b. debit to Cash and a credit to Unearned Revenue. c. debit to Cash and a credit to Service Revenue. d. credit to Accounts Receivable and a credit to Service Revenue. e. credit to Service Revenue and a debit to Unearned Revenue.

e. credit to Service Revenue and a debit to Unearned Revenue.

Which of the following is true about employer payroll taxes? a. They represent the federal taxes withheld from employees. b. They represent the social security taxes withheld from employees. c. They are an added expense beyond the wages and salaries earned by employees. d. They are paid by the employee. e. All of the above

They are an added expense beyond the wages and salaries earned by employees.

Corn is the only employee of Zip, Inc. During the first week of February, Corn earned $3,000 and had federal and state income tax withholdings of $150 and $56.25, respectively. FICA taxes are 7.65 percent on wages up to $106,800. State and federal unemployment taxes for the period are $225.00 and $36, respectively. What would be the amount of Corn's payroll check for the first week of February? a. $2,564.25 b. $2,334.75 c. $2,303.25 d. $3,000.00

a. $2,564.25

The total amount of interest that will be paid on a three-month, $15,000, 9% note payable equals: a. $337.50 b. $225.00 c. $562.50 d. $1,350.00

a. $337.50

Engstrom Company makes a sale and collects a total of $378.00, which includes an 8% sales tax. What is the amount that will be credited to the Sales Revenue account? a. $348.00 b. $350.00 c. $378.00 d. $408.24

b. $350.00