Question 1

General Co.entered into the following transactions involving short-term notes payable.
On May 14,General purchased $40,000 merchandise from Steller Co. ,terms are 2/15,n/30.General uses the perpetual inventory system.On May 29,General replaced the May 14 account payable with a 60-day,$36,000 note bearing 8% annual along with paying $4,000 in cash.On July 28,General paid the amount due on the note at maturity.
Prepare journal entries for all the preceding transactions and events.

Accepted Answer

The answer of General Co.entered into the following transactions involving...

Question 2

Recording employee payroll deductions may involve:

Accepted Answer

A)  Liabilities to the employer.
B)  Liabilities to federal and state governments.
C)  Expenses for state unemployment.
D)  Expenses for the gross wages and salaries.
E)  Expenses for the employer portion of any medical insurance.F) B) and E)
G) A) and E)

Question 3

An employee earned $37,000 during the year working for an employer when the maximum limit for Social Security was $117,000.The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%.The employee's annual FICA taxes amount is:

Accepted Answer

A)  $2,294.00.
B)  $536.50.
C)  $2,830.50.
D)  $1,757.50.
E)  $8,950.50.F) A) and B)
G) C) and E)

Question 4

Which of the following do not apply to unearned revenues?

Accepted Answer

A)  Also called deferred revenues.
B)  Amounts received in advance from customers for future delivery of products or services.
C)  Also called collections in advance.
D)  Also called prepayments.
E)  Amounts to be received in the future from customers for delivery of products or services in the current period.F) A) and B)
G) D) and E)

Question 5

A _____________________ is a seller's obligation to replace or correct a product or service that fails to perform as expected within a specified period.

Accepted Answer

The answer of A _____________________ is a seller's obligation to...

Question 6

Debt guarantees are:

Accepted Answer

A)  Never disclosed in the financial statements.
B)  Considered to be contingent liabilities.
C)  A bad business practice.
D)  Recorded as liabilities even though it is highly unlikely that the original debtor will default.
E)  Considered to be current liabilities.F) A) and C)
G) A) and D)

Question 7

FUTA taxes are:

Accepted Answer

A)  Social Security taxes.
B)  Medicare taxes.
C)  Employee income taxes.
D)  Unemployment taxes.
E)  Employee deductions.F) D) and E)
G) C) and D)

Question 8

Uncertainties such as natural disasters are:

Accepted Answer

A)  Not contingent liabilities because they are future events not arising from past transactions or events.
B)  Contingent liabilities because they are future events arising from past transactions or events.
C)  Disclosed because of their usefulness to financial statements.
D)  Estimated liabilities because the amounts are uncertain.
E)  Reported in the same way as debt guarantees.F) A) and C)
G) A) and D)

Question 9

Star Recreation receives $48,000 cash in advance ticket sales for 12 home games.Record the advance ticket sales on April 30.Record the revenue earned for the first home game played on August 14.

Accepted Answer

The answer of Star Recreation receives $48,000 cash in advance...

Question 10

The payroll records of a company provided the following data for the weekly pay period ended December 7:  The FICA social security tax rate is 6.2% and the FICA Medicare tax rate is 1.45% on all of this week's wages paid to each employee.The federal and state unemployment tax rates are 0.8% and 5.4%,respectively,on the first $7,000 paid to each employee.Prepare the journal entries to (a)accrue the payroll and (b)record payroll taxes expense.

Accepted Answer

The answer of The payroll records of a company provided...

Question 11

A company has 90 employees and a weekly payroll of $117,000.The FICA-social security tax withheld totals $7,254 and the FICA-Medicare tax withheld totals $1,696.50.The total withholding for federal income tax is $16,500.Prepare the journal entry to accrue this week's salaries expense and withholdings.

Accepted Answer

The answer of A company has 90 employees and a...

Question 12

Gary Marks is paid on a monthly basis.For the month of January of the current year,he earned a total of $8,288.FICA tax for Social Security is 6.2% and the FICA tax for Medicare is 1.45%.The FUTA tax rate is 0.6%,and the SUTA tax rate is 5.4%.Both unemployment taxes are applied to the first $7,000 of an employee's pay.The amount of Federal Income Tax withheld from his earnings was $1,375.17.What is the amount of the employer's payroll taxes expenses for this employee?

Accepted Answer

A)  $2,009.21
B)  $1,131.31
C)  $2,506.48
D)  $420.00
E)  $1,054.04F) A) and E)
G) A) and B)

Question 13

Employees earn vacation pay at the rate of one day per month.During the month of July,25 employees qualify for one vacation day each.Their average daily wage is $100 per day.What is the amount of vacation benefit expense to be recorded for the month of July?

Accepted Answer

A)  $25
B)  $100
C)  $250
D)  $2,500
E)  $25,000F) D) and E)
G) A) and B)

Question 14

Vacation benefits are a type of _______________ liability.

Accepted Answer

The answer of Vacation benefits are a type of _______________...

Question 15

The current FUTA tax rate is 0.6%,and the SUTA tax rate is 5.4%.Both taxes are applied to the first $7,000 of an employee's pay.Assume that an employee earned total wages of $2,900 in the current period and had cumulative pay for prior periods of $5,800.What is the amount of unemployment taxes the employer must pay on this employee's wages for the current period?

Accepted Answer

A)  $420.00.
B)  $348.00.
C)  $72.00.
D)  $174.00.
E)  $0.00.F) B) and D)
G) All of the above

Question 16

A ___________________ is a potential obligation that depends on a future event arising from a past transaction or event.

Accepted Answer

contingent...

Question 17

If a company has advance subscription sales totaling $45,000 for the upcoming year when four quarterly journals will mailed to customers,the receipt of cash would be journalized as:

Accepted Answer

A)  Debit Cash $45,000;credit Unearned Revenue $45,000.
B)  Debit Unearned Revenue $45,000;credit Sales $45,000.
C)  Debit Cash $45,000,credit Sales $45,000.
D)  Debit Sales $45,000,credit Unearned Revenue $45,000.
E)  Debit Prepaid Subscriptions $45,000,credit Sales $45,000.F) C) and D)
G) A) and D)

Question 18

Athena Company's salaried employees earn two weeks of vacation per year.It pays $858,000 in total employee salaries for 52 weeks but its employees work only 50.Record Athena Company's weekly journal entry to record the vacation expense:

Accepted Answer

A)  Debit Vacation Benefits Expense $16,500;credit Vacation Benefits Payable $16,500.
B)  Debit Vacation Benefits Expense $17,160;credit Vacation Benefits Payable $17,160.
C)  Debit Vacation Benefits Expense $17,875;credit Vacation Benefits Payable $17,875.
D)  Debit Vacation Benefits Payable $17,160;credit Vacation Benefits Expense $17,160.
E)  Debit Vacation Benefits Payable $16,500;credit Vacation Benefits Expense $16,500.F) A) and E)
G) A) and D)

Question 19

To compute the amount of tax withheld from an employee's pay,employers can use a __________________________ table.

Accepted Answer

wage brack...

Question 20

An employee earned $128,500 working for an employer in the current year.The current rate for FICA Social Security is 6.2% payable on earnings up to $117,000 maximum per year and the rate for FICA Medicare 1.45%.The employer's total FICA payroll tax for this employee is:

Accepted Answer

A)  $9,117.25.
B)  $9,830.25.
C)  $879.75.
D)  $8,950.50.
E)  $0,since the FICA tax is only deducted from an employee's pay.F) D) and E)
G) B) and E)

Exam 11: Current Liabilities and Payroll Accounting

Correct Answer
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Employees earn vacation pay at the rate of one day per month.During the month of July,25 employees qualify for one vacation day each.Their average daily wage is $100 per day.What is the amount of vacation benefit expense to be recorded for the month of July?

Correct Answer
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Correct Answer
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Vacation benefits are a type of _______________ liability.

Correct Answer
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A _____________________ is a seller's obligation to replace or correct a product or service that fails to perform as expected within a specified period.

Correct Answer
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To compute the amount of tax withheld from an employee's pay,employers can use a __________________________ table.

Correct Answer
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wage brack...
View Answer

If a company has advance subscription sales totaling $45,000 for the upcoming year when four quarterly journals will mailed to customers,the receipt of cash would be journalized as:

Correct Answer
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Recording employee payroll deductions may involve:

Correct Answer
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Debt guarantees are:

Correct Answer
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FUTA taxes are:

Correct Answer
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Athena Company's salaried employees earn two weeks of vacation per year.It pays $858,000 in total employee salaries for 52 weeks but its employees work only 50.Record Athena Company's weekly journal entry to record the vacation expense:

Correct Answer
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A ___________________ is a potential obligation that depends on a future event arising from a past transaction or event.

Correct Answer
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contingent...
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Correct Answer
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Star Recreation receives $48,000 cash in advance ticket sales for 12 home games.Record the advance ticket sales on April 30.Record the revenue earned for the first home game played on August 14.

Correct Answer
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Correct Answer
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Which of the following do not apply to unearned revenues?

Correct Answer
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Correct Answer
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An employee earned $128,500 working for an employer in the current year.The current rate for FICA Social Security is 6.2% payable on earnings up to $117,000 maximum per year and the rate for FICA Medicare 1.45%.The employer's total FICA payroll tax for this employee is:

Correct Answer
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An employee earned $37,000 during the year working for an employer when the maximum limit for Social Security was $117,000.The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%.The employee's annual FICA taxes amount is:

Correct Answer
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Uncertainties such as natural disasters are:

Correct Answer
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Exam 11: Current Liabilities and Payroll Accounting

Correct AnswerverifiedShow Answer

Employees earn vacation pay at the rate of one day per month.During the month of July,25 employees qualify for one vacation day each.Their average daily wage is $100 per day.What is the amount of vacation benefit expense to be recorded for the month of July?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Vacation benefits are a type of _______________ liability.

Correct AnswerverifiedShow Answer

A _____________________ is a seller's obligation to replace or correct a product or service that fails to perform as expected within a specified period.

Correct AnswerverifiedShow Answer

To compute the amount of tax withheld from an employee's pay,employers can use a __________________________ table.

Correct Answerverifiedwage brack...View AnswerShow Answer

If a company has advance subscription sales totaling $45,000 for the upcoming year when four quarterly journals will mailed to customers,the receipt of cash would be journalized as:

Correct AnswerverifiedShow Answer

Recording employee payroll deductions may involve:

Correct AnswerverifiedShow Answer

Debt guarantees are:

Correct AnswerverifiedShow Answer

FUTA taxes are:

Correct AnswerverifiedShow Answer

Athena Company's salaried employees earn two weeks of vacation per year.It pays $858,000 in total employee salaries for 52 weeks but its employees work only 50.Record Athena Company's weekly journal entry to record the vacation expense:

Correct AnswerverifiedShow Answer

A ___________________ is a potential obligation that depends on a future event arising from a past transaction or event.

Correct Answerverifiedcontingent...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Star Recreation receives $48,000 cash in advance ticket sales for 12 home games.Record the advance ticket sales on April 30.Record the revenue earned for the first home game played on August 14.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following do not apply to unearned revenues?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An employee earned $128,500 working for an employer in the current year.The current rate for FICA Social Security is 6.2% payable on earnings up to $117,000 maximum per year and the rate for FICA Medicare 1.45%.The employer's total FICA payroll tax for this employee is:

Correct AnswerverifiedShow Answer

An employee earned $37,000 during the year working for an employer when the maximum limit for Social Security was $117,000.The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%.The employee's annual FICA taxes amount is:

Correct AnswerverifiedShow Answer

Uncertainties such as natural disasters are:

Correct AnswerverifiedShow Answer

Correct Answer
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wage brack...
View Answer

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contingent...
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