Chapter 13 Accounting

The payroll journal entry is based on the totals of the payroll register (A) Total Earnings column, each deduction column, and the Net Pay column (B) Total Earnings, Earnings Regular, Earnings Overtime, and Deductions Total columns (C) Earnings Regular, Earnings Overtime, and Deductions Total columns (D) Total Earnings, Earnings Regular, and Earnings Overtime Total columns. (p. 379)

A- Total Earnings column, each deduction column, and the Net Pay column

Each employer is required by law to report payroll taxes on an (A) IRS Form W-4 (B) IRS Form 941 (C) IRS Form W-2 (D) IRS Form W-3. (p. 389)

B- IRS Form 941

Each employer who withholds income tax, social security tax, and Medicare tax from employee earnings must furnish each employee an (A) IRS Form W-4 (B) IRS Form W-2 (C) IRS Form W-3 (D) IRS Form 941. (p. 387)

B- IRS Form W-2

The Total Earnings column total of a payroll register is journalized as a debit to (A) Cash (B) Salary Expense (C) Employee Income Tax Payable (D) Social Security Tax Payable. (p. 380)

B- Salary Expense

Employer payroll taxes are (A) assets (B) expenses (C) revenues (D) none of these. (p. 382)

B- expenses

An employee's earnings subject to unemployment taxes are referred to as (A) gross earnings (B) net earnings (C) FUTA earnings (D) accumulated earnings. (p. 383)

C- FUTA earnings

All the payroll information needed to prepare payroll and tax reports is found on (A) Form W-4 and the employee earnings record (B) Form W-4 and the payroll register (C) the payroll register and the employee earnings record (D) Form W-4. (p. 378)

C- Payroll register and employee earnings records provide

The form used to report annual earnings and payroll taxes for all employees to the Social Security Administration is the (A) W-2 (B) Form 941 (C) W-3 (D) W-4. (p. 390)

C- W-3

The total of the Federal Income Tax column of a payroll register is credited to (A) a revenue account (B) an expense account (C) a liability account (D) an asset account. (p. 380)

C- a liability account

To record the payment of federal unemployment tax, the account debited is (A) a revenue account (B) an expense account (C) a liability account (D) an asset account. (p. 396)

C- a liability account

The total of the Net Pay column of the payroll register is credited to (A) a revenue account (B) an expense account (C) an asset account (D) a liability account. (p. 380)

C- an asset account

A tax paid to administer the unemployment program is the (A) social security tax (B) Medicare tax (C) federal unemployment tax (D) state unemployment tax. (p. 382)

C- federal unemployment tax

Payroll taxes that are paid by both the employer and the employee are (A) federal unemployment tax and social security tax (B) federal unemployment tax and Medicare tax (C) social security tax and Medicare tax (D) federal income tax, social security tax, and Medicare tax. (p. 382)

C-social security tax and Medicare tax

When a semimonthly payroll is paid, the credit to Cash is equal to the (A) total earnings of all employees (B) total deductions for income tax and social security tax (C) total deductions (D) net pay of all employees. (p. 380)

D- net pay of all employees

A state tax used to pay benefits to unemployed workers is the (A) social security tax (B) Medicare tax (C) unemployment tax (D) state unemployment tax. (p. 382)

D- state unemployment tax