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
