Question 1

Banks authorized to accept deposits of amounts payable to the federal government,including amounts due for payroll taxes are _________________________________.

Accepted Answer

federal de...

Question 2

The Federal Insurance Contributions Act (FICA) requires that each employer file a:

Accepted Answer

A)  W-4.
B)  Form 941.
C)  Form 1040.
D)  Form 1099.
E)  W-2.F) A) and B)
G) All of the above

Question 3

During June,Vixen Fur Company sells $850,000 in merchandise that has a one year warranty.Experience shows that warranty expenses average about 3% of the selling price.Customers returned $14,000 of merchandise for warranty replacement during the month.The entry to record the estimated warranty provision at the end of the month is:

Accepted Answer

A)  Debit Warranty Expense $11,500;credit Estimated Warranty Liability $11,500.
B)  Debit Warranty Expense $14,000;credit Estimated Warranty Liability $14,000.
C)  Debit Warranty Expense $25,500;credit Estimated Warranty Liability $25,500.
D)  Debit Estimated Warranty Liability $14,000;credit Warranty Expense $14,000.
E)  Debit Estimated Warranty Liability $11,500;credit Warranty Expense $11,500.F) All of the above
G) A) and E)

Question 4

Calculate the total amount of FICA withholding for an employee whose pay is $2,400 for the first pay period of the year.The tax rate for FICA-Social Security is 6.2% and the tax rate for FICA-Medicare is 1.45%.

Accepted Answer

The answer of Calculate the total amount of FICA withholding...

Question 5

On September 1,Knack Company signed a $50,000,90-day,5% note payable with Central Savings Bank.What is the journal entry that should be recorded by Knack upon maturity of the note?

Accepted Answer

A)  Debit Interest Expense $625;credit Interest Payable $625.
B)  Debit Notes Payable $50,000;credit Interest Revenue $625;credit Cash $49,375.
C)  Debit Cash $50,625;credit Notes Receivable $50,625.
D)  Debit Notes Payable $50,625;credit Cash $50,625.
E)  Debit Notes Payable $50,000;debit Interest Expense $625;credit Cash $50,625.F) A) and C)
G) A) and B)

Question 6

A company's payroll for the week ended May 15 included earned salaries of $20,000.All of that week's pay is subject to FICA social security taxes of 6.2% and Medicare taxes of 1.45%.In addition,the company withholds the following amounts for this weekly pay period: $900 for medical insurance,$3,400 for federal income taxes,and $180 for union dues.
a.Prepare the general journal entry to accrue the payroll.
b.The company is subject to state unemployment taxes at the rate of 2% and federal unemployment taxes at the rate of 0.6%.By May 15,some employees had earned over $7,000,so only $11,000 of the $20,000 weekly gross pay was subject to unemployment tax.Prepare the general journal entry to accrue the employer's payroll tax expense.

Accepted Answer

The answer of A company's payroll for the week ended...

Question 7

On November 1,Alan Company signed a 120-day,8% note payable,with a face value of $9,000.What is the maturity value of the note on March 1?

Accepted Answer

A)  $9,000
B)  $720
C)  $9,120
D)  $9,720
E)  $9,240F) A) and D)
G) D) and E)

Question 8

Obligations due within one year or the company's operating cycle,whichever is longer,are ________________________.

Accepted Answer

The answer of Obligations due within one year or the...

Question 9

Trey Morgan is an employee who is paid monthly.For the month of January of the current year,he earned a total of $4,538.The FICA tax for social security is 6.2% and the FICA tax rate for Medicare is 1.45% for both the employee and the employer.The amount of federal income tax withheld from his earnings was $680.70.What is the total amount of taxes withheld from the Trey's earnings?

Accepted Answer

A)  $1,375.02
B)  $746.50
C)  $962.06
D)  $1,027.86
E)  $680.70F) All of the above
G) A) and B)

Question 10

If a company uses a special payroll bank account:

Accepted Answer

A)  The company does not need to issue paychecks.
B)  The company draws one check for the entire payroll on the regular bank account and deposits it in the payroll bank account.
C)  The company must use a federal depository bank for the payroll bank account.
D)  There is no need for a payroll register.
E)  There is no need to issue W-2's.F) B) and D)
G) D) and E)

Question 11

On November 1,Alan Company signed a 120-day,8% note payable,with a face value of $9,000.What is the adjusting entry for the accrued interest at December 31 on the note?

Accepted Answer

A)  Debit interest expense,$0;credit interest payable,$0.
B)  Debit interest payable,$120;credit interest expense,$120.
C)  Debit interest expense,$120;credit interest payable,$120.
D)  Debit interest expense,$720;credit interest payable,$720.
E)  Debit interest payable,$240;credit interest expense,$240.F) A) and B)
G) A) and C)

Question 12

Portia Grant is an employee who is paid monthly.For the month of January of the current year,she earned a total of $8,260.The FICA tax for social security is 6.2% and the FICA tax rate for Medicare is 1.45%.The FUTA tax rate of .6% and the SUTA tax rate of 5.4% are applied to the first $7,000 of an employee's pay.The amount of federal income tax withheld from her earnings was $1,325.17.Her net pay for the month is:

Accepted Answer

A)  $6,422.71
B)  $6,246.94
C)  $6,302.94.
D)   $5,868.94
E)  $6,422.71.F) All of the above
G) B) and C)

Question 13

Short-term notes payable:

Accepted Answer

A)  Cannot replace an account payable.
B)  Can be issued in return for money borrowed from a bank.
C)  Are not negotiable.
D)  Are a conditional promise to pay.
E)  Rarely involve interest charges.F) C) and D)
G) A) and C)

Question 14

Richardson Fields receives $31,680 cash in advance ticket sales for 11 home soccer games.Record the advance ticket sales on March 31.Record the revenue earned for the first game played on August 17.

Accepted Answer

The answer of Richardson Fields receives $31,680 cash in advance...

Question 15

During August,Boxer Company sells $356,000 in merchandise that has a one year warranty.Experience shows that warranty expenses average about 5% of the selling price.The warranty liability account has a credit balance of $12,800 before adjustment.Customers returned merchandise for warranty repairs during the month that used $9,400 in parts for repairs.The entry to record the estimated warranty expense for the month is:

Accepted Answer

A)  Debit Warranty Expense $17,800;credit Estimated Warranty Liability $17,800.
B)  Debit Warranty Expense $5,000;credit Estimated Warranty Liability $5,000.
C)  Debit Warranty Expense $14,400;credit Estimated Warranty Liability $14,400.
D)  Debit Estimated Warranty Liability $9,400;credit Warranty Expense $9,400.
E)  Debit Estimated Warranty Liability $17,800;credit Warranty Expense $17,800.F) A) and C)
G) C) and D)

Question 16

If the times interest earned ratio:

Accepted Answer

A)  Increases,then risk increases.
B)  Increases,then risk decreases.
C)  Is greater than 1.5,the company is in default.
D)  Is less than 1.5,the company is carrying too little debt.
E)  Is greater than 3.0,the company is likely carrying too much debt.F) C) and E)
G) A) and B)

Question 17

A _______________________ is a written promise to pay a specified amount on a definite future date within one year or the company's operating cycle,whichever is longer.

Accepted Answer

short-term...

Question 18

A short-term note payable:

Accepted Answer

A)  Is a written promise to pay a specified amount on a definite future date within one year or the company's operating cycle,whichever is longer.
B)  Is a contingent liability.
C)  Is an estimated liability.
D)  Is not a liability until the due date.
E)  Cannot be used to extend the payment period for an account payable.F) A) and E)
G) C) and D)

Question 19

Gross pay is:

Accepted Answer

A)  Take-home pay.
B)  Total compensation earned by an employee before any deductions.
C)  Salaries after taxes are deducted.
D)  Deductions withheld by an employer.
E)  The amount of the paycheck.F) None of the above
G) A) and B)

Question 20

Furniture World is required by law to collect and remit sales taxes to the state.If Furniture World has $78,000 of cash sales that are subject to a 6% sales tax,what is the journal entry to record the cash sales?

Accepted Answer

A)  Debit Cash $82,680;credit Sales $78,000;credit Sales Taxes Payable $4,680.
B)  Debit Sales Taxes Payable $4,680;debit Cash $73,220;credit Sales $78,000.
C)  Debit Cash $78,000;credit Sales $78,000;and record the taxes when paid.
D)  Debit Cash $78,000;credit Sales $73,320;credit Sales Taxes Payable $4,680.
E)  Debit Accounts Receivable $82,680;credit Sales $78,000;credit Sales Taxes Payable $4,680.F) None of the above
G) C) and E)

Exam 11: Current Liabilities and Payroll Accounting

The Federal Insurance Contributions Act (FICA) requires that each employer file a:

Correct Answer
verified

Calculate the total amount of FICA withholding for an employee whose pay is $2,400 for the first pay period of the year.The tax rate for FICA-Social Security is 6.2% and the tax rate for FICA-Medicare is 1.45%.

Correct Answer
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Correct Answer
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A short-term note payable:

Correct Answer
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Richardson Fields receives $31,680 cash in advance ticket sales for 11 home soccer games.Record the advance ticket sales on March 31.Record the revenue earned for the first game played on August 17.

Correct Answer
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On November 1,Alan Company signed a 120-day,8% note payable,with a face value of $9,000.What is the adjusting entry for the accrued interest at December 31 on the note?

Correct Answer
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Gross pay is:

Correct Answer
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If the times interest earned ratio:

Correct Answer
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Correct Answer
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If a company uses a special payroll bank account:

Correct Answer
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Furniture World is required by law to collect and remit sales taxes to the state.If Furniture World has $78,000 of cash sales that are subject to a 6% sales tax,what is the journal entry to record the cash sales?

Correct Answer
verified

Short-term notes payable:

Correct Answer
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Banks authorized to accept deposits of amounts payable to the federal government,including amounts due for payroll taxes are _________________________________.

Correct Answer
verified
federal de...
View Answer

On September 1,Knack Company signed a $50,000,90-day,5% note payable with Central Savings Bank.What is the journal entry that should be recorded by Knack upon maturity of the note?

Correct Answer
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Correct Answer
verified

On November 1,Alan Company signed a 120-day,8% note payable,with a face value of $9,000.What is the maturity value of the note on March 1?

Correct Answer
verified

A _______________________ is a written promise to pay a specified amount on a definite future date within one year or the company's operating cycle,whichever is longer.

Correct Answer
verified
short-term...
View Answer

Obligations due within one year or the company's operating cycle,whichever is longer,are ________________________.

Correct Answer
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Correct Answer
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Correct Answer
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Exam 11: Current Liabilities and Payroll Accounting

The Federal Insurance Contributions Act (FICA) requires that each employer file a:

Correct AnswerverifiedShow Answer

Calculate the total amount of FICA withholding for an employee whose pay is $2,400 for the first pay period of the year.The tax rate for FICA-Social Security is 6.2% and the tax rate for FICA-Medicare is 1.45%.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A short-term note payable:

Correct AnswerverifiedShow Answer

Richardson Fields receives $31,680 cash in advance ticket sales for 11 home soccer games.Record the advance ticket sales on March 31.Record the revenue earned for the first game played on August 17.

Correct AnswerverifiedShow Answer

On November 1,Alan Company signed a 120-day,8% note payable,with a face value of $9,000.What is the adjusting entry for the accrued interest at December 31 on the note?

Correct AnswerverifiedShow Answer

Gross pay is:

Correct AnswerverifiedShow Answer

If the times interest earned ratio:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If a company uses a special payroll bank account:

Correct AnswerverifiedShow Answer

Furniture World is required by law to collect and remit sales taxes to the state.If Furniture World has $78,000 of cash sales that are subject to a 6% sales tax,what is the journal entry to record the cash sales?

Correct AnswerverifiedShow Answer

Short-term notes payable:

Correct AnswerverifiedShow Answer

Banks authorized to accept deposits of amounts payable to the federal government,including amounts due for payroll taxes are _________________________________.

Correct Answerverifiedfederal de...View AnswerShow Answer

On September 1,Knack Company signed a $50,000,90-day,5% note payable with Central Savings Bank.What is the journal entry that should be recorded by Knack upon maturity of the note?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

On November 1,Alan Company signed a 120-day,8% note payable,with a face value of $9,000.What is the maturity value of the note on March 1?

Correct AnswerverifiedShow Answer

A _______________________ is a written promise to pay a specified amount on a definite future date within one year or the company's operating cycle,whichever is longer.

Correct Answerverifiedshort-term...View AnswerShow Answer

Obligations due within one year or the company's operating cycle,whichever is longer,are ________________________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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federal de...
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short-term...
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