ACCT 160 Chapter 07 Study Guide
Frellies Gym has a credit balance of $31,985.27 in its Wages and Salaries Payable General Ledger account as of August 16. If the pay date is August 16, what transaction should appear in the Wages and Salaries Payable General Ledger account on that date? A) Debit $31,985.27 B) Credit $31,985.27 C) Debit $63,970.54 D) Credit $63,970.54
A) Debit $31,985.27
Which of the following payroll items is not reflected on the income statement? A) Federal withholding tax payable B) Health insurance expense C) Salaries and wages expense D) Payroll taxes expense
A) Federal withholding tax payable
What does the term "billable time" mean as it pertains to payroll accounting? A) It is employee labor that may be billed to customers. B) It is employee labor that does not pertain to labor on customer jobs. C) It is non-employee labor that the company must pay. D) It is non-traceable labor that a company must absorb as overhead.
A) It is employee labor that may be billed to customers.
Which of the following is true about the fundamental accounting equation? A) It must remain in balance at all times. B) It is always expressed as assets = liabilities - owners' equity. C) One side of the equation must equal zero. D) It must be expressed as assets + liabilities = owners' equity.
A) It must remain in balance at all times.
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? A) It should create a reversing entry in the General Journal. B) It should disburse the accrued pay to the employees. C) It should create a reminder about the accrual to ensure accuracy of computations on the next pay date. D) It should make a note to create the reversing entry at the end of the next financial period.
A) It should create a reversing entry in the General Journal.
Enchanted Creations has the following data in its Federal withholding tax payable General Ledger account: ACCOUNT Federal withholding tax payable Account Number. 220 DATE DESCRIPTION POST REFERENCE DEBIT CREDIT BALANCE DEBIT CREDIT April 16 J23 18,295.00 36,590.00 April 30 J27 18,295.00 What is the balance of the account as of April 30? A) Credit $18,295.00 B) Debit $18,295.00 C) Debit $54,885.00 D) Credit $54,885.00
D) Credit $54,885.00
Rushing River Boats has the following data in its Social Security tax payable General Ledger account: Social Security tax payable Account Number. 221 DATE DESCRIPTION POST REFERENCE DEBIT CREDIT BALANCE DEBIT CREDIT January 31 J4 420 1,620 February 15 J5 It is a monthly schedule depositor. What entry should appear in the General Ledger to reflect the tax remittance on February 15? A) Credit $420 B) Debit $420 C) Credit $1,620 D) Debit $1,620
D) Debit $1,620
77) A debit always decreases the balance of an account. True or False
false
In the General Ledger, the debit column always reflects the balance of the account. True or False
false
Payroll accruals reflect the amount of payroll paid but not earned at the end of the financial period. True or False
false
The payroll register is identical for each company. True or False
false
Rushing River Boats has the following data in its Social Security tax payable General Ledger account: Social Security tax payable Account Number. 221 DATE DESCRIPTION POST REFERENCE DEBIT CREDIT BALANCE DEBIT CREDIT January 31 J4 430.00 1,640.00 February 15 J5 It is a monthly schedule depositor. What entry should appear in the General Ledger to reflect the tax remittance on February 15? A) Credit $430.00 B) Debit $430.00 C) Credit $1,640.00 D) Debit $1,640.00
D) Debit $1,640.00
On December 1, 20XX, Riley Sanders invested $250,000 to open Sanders Enterprises. What is the General Journal entry to record this transaction? A) Debit R. Sanders Capital, $250,000 & Credit Cash, $250,000 B) Debit Revenue, $250,000 & Credit Cash, $250,000 C) Debit Cash, $250,000 & Credit Revenue, $250,000 D) Debit Cash, $250,000 & Credit R. Sanders Capital, $250,000
D) Debit Cash, $250,000 & Credit R. Sanders Capital, $250,000
On December 1, 20XX, Riley Sanders invested $390,000 to open Sanders Enterprises. What is the General Journal entry to record this transaction? A) Debit R. Sanders Capital, $390,000 & Credit Cash, $390,000 B) Debit Revenue, $390,000 & Credit Cash, $390,000 C) Debit Cash, $390,000 & Credit Revenue, $390,000 D) Debit Cash, $390,000 & Credit R. Sanders Capital, $390,000
D) Debit Cash, $390,000 & Credit R. Sanders Capital, $390,000
How does a payroll accountant keep track of employee's year-to-date earnings for wage bases on taxes like FICA, FUTA, and SUTA? A) Form W-4 B) Form W-2 C) Payroll register D) Employee earnings record
D) Employee earnings record
Which of the following is an example of a liability account? A) Cash B) Payroll Taxes Expense C) Salaries and Wages Expense D) FUTA Payable
D) FUTA Payable
The purpose of the ________ is to record all the financial transactions of a firm. A) General Ledger B) T-account C) Payroll register D) General Journal
D) General Journal
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? A) It must credit the asset accounts for the appropriate payroll amounts. B) It must pay its employees for the wages earned as of that date. C) It must wait until the next financial period to record the payroll data. D) It must create an adjusting entry to recognize the payroll accrual.
D) It must create an adjusting entry to recognize the payroll accrual.
The _____________ reports designate where workers are used in a company. A) Billable vs. nonbillable B) Trend C) Overtime D) Labor usage
D) Labor usage
What is true about the trial balance? A) It contains a detailed listing of every transaction during a period. B) It may contain whatever accounts the accountant wishes to include. C) Payroll accounts do not appear on the trial balance because of their changeable nature. D) The total of the debits must equal the total of the credits.
D) The total of the debits must equal the total of the credits.
What effect do payroll entries have on a firm's accounting system? A) They increase the firm's assets. B) They reduce the firm's liabilities. C) They increase the owners' equity. D) They increase the firm's expenses.
D) They increase the firm's expenses.
The payroll register contains ________. A) the employee's name, social security number, and address B) the name of the firm and the payroll accountant C) the beginning and ending dates of the pay period D) the total gross pay, deductions, and net pay during the period
D) the total gross pay, deductions, and net pay during the period
How does a debit balance in the wages and salaries expense account affect a firm's income statement? A) A debit balance will increase the expenses of the firm's income statement. This will increase the total expenses of the firm and decrease the net income of the firm. B) A debit balance will decrease the expenses of the firm's income statement. This will increase the total incomes of the firm and decrease the net income of the firm. C) A debit balance will increase the expenses of the firm's income statement. This will decrease the total expenses of the firm and increase the net income of the firm. D) A debit balance will increase the income of the firm's income statement. This will increase the total expenses of the firm and increase the net income of the firm.
A) A debit balance will increase the expenses of the firm's income statement. This will increase the total expenses of the firm and decrease the net income of the firm.
Why does company profitability decrease in direct proportion to the payroll expenses? A) Because payroll represents a liability and an expense of the business. The higher payroll expenses are, the lower the profitability will be. B) Because payroll represents an asset and an income of the business. The higher payroll incomes are, the higher the profitability will be. C) Because payroll represents a liability and an expense of the business. The lower payroll expenses are, the lower the profitability will be. D) Because payroll represents an asset and an income of the business. The lower the payroll expenses are, the higher the profitability will be.
A) Because payroll represents a liability and an expense of the business. The higher payroll expenses are, the lower the profitability will be.
Frellies Gym has a credit balance of $31,485.27 in its Wages and Salaries Payable General Ledger account as of August 16. If the pay date is August 16, what transaction should appear in the Wages and Salaries Payable General Ledger account on that date? A) Debit $31,485.27 B) Credit $31,485.27 C) Debit $62,970.54 D) Credit $62,970.54
A) Debit $31,485.27
The following data is for the January 19 pay date for Waryzbok Incorporated: Date Account Title Account Number Debit Credit January 19 Wages and salaries expense 522 $ 12,987.00 Federal withholding tax payable 220 $ 2,207.79 Social Security tax payable 221 ??? Medicare tax payable 222 ??? 401(k) contributions payable 223 454.55 Health Insurance payable 224 944.15 State Income tax payable 227 324.68 Wages and salaries payable 226 8,134.55 January 19 Wages and salaries payable 226 8,134.55 Cash 101 8,134.55 Which of the following represents the missing Social Security and Medicare taxes, assuming that the health insurance is qualified under Section 125? A) Social Security tax, $746.66 & Medicare tax, $174.62 B) Social Security tax, $188.31 & Medicare tax, $805.19 C) Social Security tax, $204.15 & Medicare tax, $792.35 D) Social Security tax, $792.35 & Medicare tax, $204.15
A) Social Security tax, $746.66 & Medicare tax, $174.62
The following data is for the January 19 pay date for Waryzbok Incorporated: Date Account Title Account Number Debit Credit January 19 Wages and salaries expense 522 $ 14,587.00 Federal withholding tax payable 220 $ 2,479.79 Social Security tax payable 221 ??? Medicare tax payable 222 ??? 401(k) contributions payable 223 510.55 Health Insurance payable 224 1,060.47 State Income tax payable 227 364.68 Wages and salaries payable 226 9,136.73 January 19 Wages and salaries payable 226 9,136.73 Cash 101 9,136.73 Which of the following represents the missing Social Security and Medicare taxes, assuming that the health insurance is qualified under Section 125? A) Social Security tax, $838.64 & Medicare tax, $196.13 B) Social Security tax, $211.51 & Medicare tax, $904.39 C) Social Security tax, $229.30 & Medicare tax, $889.97 D) Social Security tax, $889.97 & Medicare tax, $229.30
A) Social Security tax, $838.64 & Medicare tax, $196.13
Which report contains employer share tax expenses for a period? A) The income statement B) The statement of owners' equity C) The balance sheet D) The labor report
A) The income statement
_______ reports over multiple years highlight staffing needs for employer planning needs. A) Trend B) Labor attendance C) Labor usage D) Billable hours
A) Trend
Besides payroll information, the payroll register contains ________. A) information about the firm's liabilities B) tax remittance information C) proof of payroll deposits D) the firm's payroll checking account information
A) information about the firm's liabilities
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 ________. A) Amount & deleted B) Accrual & reversed C) Total & carried forward D) Reversal & accrued
B) Accrual & reversed
A(n) ________ is the classification for cash and other items that are used in the operation of the business. A) Liability B) Asset C) Revenue D) Equity
B) Asset
How does the payroll register connect with the employees' earnings records? A) Both documents contain information about the employee's address and job title. B) Both documents contain details of employee earnings, deductions, and disbursement for a pay period. C) Both documents contain year-to-date totals of taxes. D) Both documents contain information from multiple pay periods.
B) Both documents contain details of employee earnings, deductions, and disbursement for a pay period.
On October 15, Eco Brewers had a balance of $4,390 in its Social Security tax payable account. It posted an additional $4,390 on its October 31 pay date. Since Eco Brewers is a monthly schedule depositor, what entry should appear on November 15 for the remittance of the month's Social Security taxes? A) Credit $8,780 B) Debit $8,780 C) Credit $4,390 D) Debit $4,390
B) Debit $8,780
On October 15, Eco Brewers had a balance of $4,400.00 in its Social Security tax payable account. It posted an additional $4,400.00 on its October 31 pay date. Since Eco Brewers is a monthly schedule depositor, what entry should appear on November 15 for the remittance of the month's Social Security taxes? A) Credit $8,800.00 B) Debit $8,800.00 C) Credit $4,400.00 D) Debit $4,400.00
B) Debit $8,800.00
Supermeg Dry Cleaners had the following payroll data for its May 14 pay date: Date Account Title Account Number Debit Credit May 14 Wages and salaries expense 522 $ 187,327.54 Federal withholding tax payable 220 $ 31,845.68 Social Security tax payable 221 10,769.95 Medicare tax payable 222 2,518.78 401(k) contributions payable 223 6,556.46 Health Insurance payable 224 13,618.71 Union Dues payable 227 4,683.19 Wages and salaries payable 226 117,334.77 May 14 Wages and salaries payable 226 117,334.77 Cash 101 117,334.77 When the firm remits the union dues for this pay period, what is the correct General Journal entry? A) Debit Cash $6,556.46 & Credit Union Dues Payable $4,683.19 B) Debit Union Dues Payable $4,683.19 & Credit Cash $4,683.19 C) Debit Cash $4,683.19 & Credit Union Dues Payable $4,683.19 D) Debit Union Dues Payable $4,683.19 & Credit Cash $6,556.46
B) Debit Union Dues Payable $4,683.19 & Credit Cash $4,683.19
Supermeg Dry Cleaners had the following payroll data for its May 14 pay date: Date Account Title Account Number Debit Credit May 14 Wages and salaries expense 522 $ 191,327.54 Federal withholding tax payable 220 $ 32,525.68 Social Security tax payable 221 10,999.92 Medicare tax payable 222 2,572.56 401(k) contributions payable 223 6,696.46 Health Insurance payable 224 13,909.51 Union Dues payable 227 4,783.19 Wages and salaries payable 226 119,840.21 May 14 Wages and salaries payable 226 119,840.21 Cash 101 119,840.21 When the firm remits the union dues for this pay period, what is the correct General Journal entry? A) Debit Cash $6,696.46 & Credit Union Dues Payable $4,783.19 B) Debit Union Dues Payable $4,783.19 & Credit Cash $4,783.19 C) Debit Cash $119,840.21 & Credit Union Dues Payable $119,840.21 D) Debit Union Dues Payable $6,696.46 & Credit Cash $6,696.46
B) Debit Union Dues Payable $4,783.19 & Credit Cash $4,783.19
What is the primary purpose of a labor report? A) It depicts the ideal distribution of labor in a firm. B) It designates where labor is used in a firm. C) It communicates departmental profitability. D) It is a report designed to be read by parties external to the firm.
B) It designates where labor is used in a firm.
Which financial report contains the account related to employer-paid portions of health insurance premiums? A) The statement of owners' equity B) The income statement C) The balance sheet D) The labor report
B) The income statement
Rushing River Boats has the following data in its Social Security tax payable General Ledger account: Social Security tax payable Account Number. 221 DATE DESCRIPTION POST REFERENCE DEBIT CREDIT BALANCE DEBIT CREDIT January 31 J4 420 1,620 February 15 J5 For the entry on January 31, what does the J4 signify? A) It is the fourth entry in the General Journal on that date. B) The transaction appears on page four of the General Journal. C) It is the fourth repetition of the same entry. D) The account appears fourth in the list of liability accounts.
B) The transaction appears on page four of the General Journal.
McHale Enterprises has the following incomplete General Journal entry for the most recent pay date: Date Account Title Account Number Debit Credit October 27 Wages and salaries expense 522 $ 298,384.00 Federal withholding tax payable 220 $ 50,725.28 Social Security tax payable 221 17,980.56 Medicare tax payable 222 4,205.13 401(k) contributions payable 223 ??? Health Insurance payable 224 8,375.00 Savings bonds payable 227 1,850.00 Wages and salaries payable 226 202,671.98 October 27 Wages and salaries payable 226 202,671.98 Cash 101 202,671.98 What is the amount of the 401(k) contributions for the pay date? A) $2,253.00 B) $15,298.22 C) $12,576.05 D) $9,215.38
C) $12,576.05
McHale Enterprises has the following incomplete General Journal entry for the most recent pay date: Date Account Title Account Number Debit Credit October 27 Wages and salaries expense 522 $ 313,384.00 Federal withholding tax payable 220 $ 53,275.28 Social Security tax payable 221 18,884.45 Medicare tax payable 222 4,416.53 401(k) contributions payable 223 ??? Health Insurance payable 224 8,796.02 Savings bonds payable 227 1,943.00 Wages and salaries payable 226 212,203.27 October 27 Wages and salaries payable 226 212,203.27 Cash 101 212,203.27 What is the amount of the 401(k) contributions for the pay date? A) $2,366.26 B) $16,067.27 C) $13,865.45 D) $9,678.65
C) $13,865.45
Dooley Publishing has the following payroll data for its July 1 pay date: Date Account Title Account Number Debit Credit July 1 Wages and salaries expense 522 $ 182,930.00 Federal withholding tax payable 220 $ ??? Social Security tax payable 221 10,517.12 Medicare tax payable 222 2,459.65 401(k) contributions payable 223 6,402.55 Health Insurance payable 224 13,299.01 Union Dues payable 227 4,573.25 Wages and salaries payable 226 113,562.94 July 1 Wages and salaries payable 226 113,562.94 Cash 101 113,562.94 How much Federal withholding tax was deducted from employees' pay? A) $15,203.14 B) $42,083.87 C) $32,115.48 D) $29,391.98
C) $32,115.48
Dooley Publishing has the following payroll data for its July 1 pay date: Date Account Title Account Number Debit Credit July 1 Wages and salaries expense 522 $ 193,930.00 Federal withholding tax payable 220 $ ??? Social Security tax payable 221 11,149.54 Medicare tax payable 222 2,607.55 401(k) contributions payable 223 6,787.55 Health Insurance payable 224 14,098.71 Union Dues payable 227 4,848.25 Wages and salaries payable 226 120,391.86 July 1 Wages and salaries payable 226 120,391.86 Cash 101 120,391.86 How much Federal withholding tax was deducted from employees' pay? A) $16,117.34 B) $44,614.47 C) $34,046.53 D) $31,159.39
C) $34,046.53
It is important that the payroll accountant understand the flow of the payroll transactions, especially when working with ________. A) The payroll register B) The employee earnings record C) Accounting software packages D) Payroll tax reports
C) Accounting software packages
Which of the following is an example of an asset account? A) Revenue B) Salaries Payable C) Cash D) Payroll Tax Expense
C) Cash
Supermeg Dry Cleaners had the following payroll data for its May 14 pay date: Date Account Title Account Number Debit Credit May 14 Wages and salaries expense 522 $ 187,327.54 Federal withholding tax payable 220 $ 31,845.68 Social Security tax payable 221 10,769.95 Medicare tax payable 222 2,518.78 401(k) contributions payable 223 6,556.46 Health Insurance payable 224 13,618.71 Union Dues payable 227 4,683.19 Wages and salaries payable 226 117,334.77 May 14 Wages and salaries payable 226 117,334.77 Cash 101 117,334.77 When the firm remits its health insurance premium for this pay date, what is the General Journal entry? A) Debit Cash $13,618.71 & Credit Health Insurance Payable $13,618.71 B) Debit Cash $27,237.42 & Credit Health Insurance Payable $27,237.42 C) Debit Health Insurance Payable $13,618.71 & Credit Cash $13,618.71 D) Debit Health Insurance Payable $27,237.42 & Credit Cash $27,237.42
C) Debit Health Insurance Payable $13,618.71 & Credit Cash $13,618.71
Supermeg Dry Cleaners had the following payroll data for its May 14 pay date: Date Account Title Account Number Debit Credit May 14 Wages and salaries expense 522 $ 198,327.54 Federal withholding tax payable 220 $ 33,715.68 Social Security tax payable 221 11,402.37 Medicare tax payable 222 2,666.68 401(k) contributions payable 223 6,941.46 Health Insurance payable 224 14,418.41 Union Dues payable 227 4,958.19 Wages and salaries payable 226 124,224.75 May 14 Wages and salaries payable 226 124,224.75 Cash 101 124,224.75 When the firm remits its health insurance premium for this pay date, what is the General Journal entry? A) Debit Cash $14,418.41 & Credit Health Insurance Payable $14,418.41 B) Debit Cash $28,836.82 & Credit Health Insurance Payable $28,836.82 C) Debit Health Insurance Payable $14,418.41 & Credit Cash $14,418.41 D) Debit Health Insurance Payable $28,836.82 & Credit Cash $28,836.82
C) Debit Health Insurance Payable $14,418.41 & Credit Cash $14,418.41
The ________ is the master document that contains an employee's marital status, deductions, and year-to-date earnings. A) Payroll register B) Form W-4 C) Employee earnings record D) Personnel file
C) Employee earnings record
Which of the following reports links the accounting and the human resources departments? A) Form 941 B) Payroll register C) Employee earnings record D) Labor reports
C) Employee earnings record
What are the General Journal entries that should appear on each pay date? A) Employee pay accrual and employee pay disbursement B) Employee pay remittance and voluntary deduction remittance C) Employee pay recording and employer share payroll taxes recording D) Employee pay disbursement and voluntary deduction remittance
C) Employee pay recording and employer share payroll taxes recording
Which of the following payroll items is included on the Balance Sheet? A) Health insurance expense B) Salaries and wages expense C) Federal withholding tax payable D) Payroll taxes expense
C) Federal withholding tax payable
In the following General Journal transaction, to what do the numbers 101 and 301 refer? Date Account Title Account Number Debit Credit November 1 Cash 101 15,000 A. Stockwell, Capital 301 15,000 A) General journal numbers B) Employee numbers C) General Ledger account numbers D) Transaction numbers
C) General Ledger account numbers
When journalizing the employees' pay accrual, the ________ is/are the debit(s), and the ________ is one of the credits. A) Net pay & gross pay B) Payroll tax liabilities & gross pay C) Gross pay & net pay D) Cash account & net pay
C) Gross pay & net pay
Zipperle Company has the following payroll information for the pay period ending September 18, 20XX: Gross pay $ 27,894.50 Federal withholding tax $ 3,570.00 Social Security tax $ 1,670.56 Medicare tax $ 390.70 401(k) contributions $ 1,115.78 Health Insurance $ 950.00 Garnishment $ 450.00 Net pay $ 19,747.46 Which items would be debited in the General Journal entry to record the employees' share of the payroll? A) 401(k) contributions, $1,115.78 B) Garnishment, $450.00 C) Gross pay, $27,894.50 D) Net pay, $19,747.46
C) Gross pay, $27,894.50
Why is it important to have columns on the payroll register titled "Earnings subject to Federal Withholding" and "Earnings subject to FICA"? A) It adds complexity to the payroll register. B) Both columns contain information about the employer's tax matching responsibilities. C) It facilitates accuracy in employee payroll tax computations. D) It allows payroll employees to divert funds into faux accounts.
C) It facilitates accuracy in employee payroll tax computations.
Which of the following best describes the purpose of the payroll register? A) It is a list of all persons and companies that the company pays money during a period. B) It is a report that becomes published with other financial reports. C) It is a worksheet that accountants use to ensure payroll accuracy. D) It is an individual register maintained for each employee, listing of all the payroll information.
C) It is a worksheet that accountants use to ensure payroll accuracy.
The _________ report assists managers with monitoring labor distribution and adherence to budgeted amounts. A) Labor usage B) Billable hours C) Overtime D) Labor trend
C) Overtime
What is the term for transferring data from the General Journal to the General Ledger? A) Cross-referencing B) Ledgering C) Posting D) Transcribing
C) Posting
________ is the transferring of information from the General Journal to the General Ledger. A) Annotating B) Accruing C) Posting D) Computing
C) Posting
Which of the following is an example of a liability account? A) Cash B) Owners' Capital C) Salaries Payable D) Wages Expense
C) Salaries Payable
In what order are accounts presented on the trial balance? A) By dollar amount B) Alphabetically C) The same as the chart of accounts D) By order of importance
C) The same as the chart of accounts
In general, how are the expenses associated with the payroll accountant's labor allocated in a firm? A) They are billed directly to a customer. B) They are allocated to one department. C) They are reported as part of the firm's overhead. D) They are billed directly to each department manager.
C) They are reported as part of the firm's overhead.
In the following payroll transaction, what is the amount of the net pay? Date Account Title Account Number Debit Credit June 23 Wages and salaries expense 522 2,349,839.00 Federal withholding tax payable 220 399,472.63 Social Security tax payable 221 145,170.77 Medicare tax payable 222 33,951.23 401(k) contributions payable 223 93,993.56 Health Insurance payable 224 8,375.00 State Income tax payable 227 117,491.95 Wages and salaries payable 226 ??? A) $399,472.63 B) $2,349,839.00 C) $93,993.56 D) $1,551,383.86
D) $1,551,383.86
In the following payroll transaction, what is the amount of the net pay? Date Account Title Account Number Debit Credit June 23 Wages and salaries expense 522 2,409,839.00 Federal withholding tax payable 220 409,672.63 Social Security tax payable 221 148,890.77 Medicare tax payable 222 34,821.23 401(k) contributions payable 223 96,393.56 Health Insurance payable 224 8,495.00 State Income tax payable 227 120,491.95 Wages and salaries payable 226 ??? A) $409,672.63 B) $2,409,839.00 C) $96,393.56 D) $1,591,073.86
D) $1,591,073.86
Didier and Sons had the following employer's share payroll tax general journal entry for the May 5 pay date: Date Account Title Debit Credit May 5 Payroll Taxes Expense $ 27,671.87 Federal income tax payable 11,955.00 Social Security tax payable ??? Medicare tax payable 3,197.15 FUTA tax payable 1,322.96 SUTA tax payable 9,481.20 What is the amount of the Social Security tax payable? A) $2,572.59 B) $1,875.98 C) $1,582.39 D) $1,715.56
D) $1,715.56
Didier and Sons had the following employer's share payroll tax general journal entry for the May 5 pay date: Date Account Title Debit Credit May 5 Payroll Taxes Expense $ 28,373.04 Federal income tax payable 12,256.00 Social Security tax payable ??? Medicare tax payable 3,303.51 FUTA tax payable 1,392.96 SUTA tax payable 9,551.20 What is the amount of the Social Security tax payable? A) $25,195.23 B) $12,176.90 C) $18,027.91 D) $1,869.37
D) $1,869.37
Kierofree Air Tours has the following payroll data for its November 5 pay date: Date Account Title Account Number Debit Credit November 5 Wages and salaries expense 522 $ 199,023.00 Federal withholding tax payable 220 $ 33,833.91 Social Security tax payable 221 11,442.35term-26 Medicare tax payable 222 2,676.03 401(k) contributions payable 223 6,965.81 Health Insurance payable 224 14,468.97 Union Dues payable 227 4,975.58 Wages and salaries payable 226 ??? How much is the net pay? A) $199,023.00 B) $185,216.26 C) $142,578.94 D) $124,660.35
D) $124,660.35
Kierofree Air Tours has the following payroll data for its November 5 pay date: Date Account Title Account Number Debit Credit November 5 Wages and salaries expense 522 $ 218,023.00 Federal withholding tax payable 220 $ 37,063.91 Social Security tax payable 221 12,534.71 Medicare tax payable 222 2,931.50 401(k) contributions payable 223 7,630.81 Health Insurance payable 224 15,850.27 Union Dues payable 227 5,450.58 Wages and salaries payable 226 ??? How much is the net pay? A) $218,023.00 B) $202,898.18 C) $156,190.43 D) $136,561.22
D) $136,561.22
How do accrued, but not paid, wages appear on the balance sheet? A) As expenses B) As assets C) As equity D) As liabilities
D) As liabilities
The ________ reflects all unpaid payroll liabilities at any point in the financial period. A) Income statement B) Statement of Owners' Equity C) Payroll register D) Balance sheet
D) Balance sheet
In which order are transactions listed in the General Journal? A) Alphabetically B) Order of importance C) Numerically D) Chronologically
D) Chronologically
As of the June 11 pay date, the General Ledger account for Burling Mills has a balance of $14,289 in its Federal withholding tax payable account. A credit of $16,250 is recorded on the June 25 pay date. What is the balance in the account? A) Debit $1,961 B) Debit $30,539 C) Credit $1,961 D) Credit $30,539
D) Credit $30,539
As of the June 11 pay date, the General Ledger account for Burling Mills has a balance of $16,089.00 in its Federal withholding tax payable account. A credit of $16,610.00 is recorded on the June 25 pay date. What is the balance in the account? A) Debit $521.00 B) Debit $32,699.00 C) Credit $521.00 D) Credit $32,699.00
D) Credit $32,699.00
Enchanted Creations has the following data in its Federal withholding tax payable General Ledger account: ACCOUNT Federal withholding tax payable Account Number. 220 DATE DESCRIPTION POST REFERENCE DEBIT CREDIT BALANCE DEBIT CREDIT April 16 J23 16,495 32,990 April 30 J27 16,495 What is the balance of the account as of April 30? A) Credit $16,495 B) Debit $16,495 C) Debit $49,485 D) Credit $49,485
D) Credit $49,485
Besides containing the supporting data for periodic tax reports, the employee earnings record serves as a backup in the event of computer failure. True or False
true
Employee earnings records form the link between accounting and the human resources department. True or False
true
The General Journal contains records of a firm's financial transactions, which appear chronologically. True or False
true
The information in the payroll register forms the basis for entries in the Employee Earnings Records and the General Journal. True or False
true
The purpose of the net pay and check number columns in the payroll register is to verify accurate disbursal of payroll. True or False
true
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. True or False
true