Question
1.) A $20,000, 90-day, 8% note payable was issued on November 1, 2015. Which of the following would be included in the journal entry required
1.) A $20,000, 90-day, 8% note payable was issued on November 1, 2015. Which of the following would be included in the journal entry required on the note's maturity date?
a credit to note payable for $20,400
a credit to cash for $10,000
a debit to interest expense for $133
a debit to interest payable for $133
2.) Which of the following is referred to as net pay?
gross pay minus federal and state income taxes
gross pay minus all deductions
take-home pay plus all deductions
all deductions plus all with holdings
3.) Richard and Linda are the only two employees of Bush Company. In January, 2013, Richard's gross pay was $5,500 and Linda's gross pay was $5,200. Each employee pays federal income tax equal to 25% of gross pay. In addition, Linda pays $200 for insurance premiums and Richard pays $225. Each has $25 withheld for life insurance premiums. Assume a FICA tax rate of 8% on all earnings, a federal unemployment tax rate of 0.8%, and a state unemployment tax rate of 5.4%. The unemployment taxes are based on the first $7,000 of employee annual earnings.
The entry to record the payroll taxes imposed on the employer would include a
debit to FICA tax payable for $856.
credit to state unemployment tax payable for $578.
debit to employee income tax payable for $2,675.
debit to federal unemployment tax payable for $86.
4.) Which of the following is a main component of a payroll system?
tax liability
earnings record
compliance checks
loss record
5.) Which of the following isnotan additional company expense?
charitable contribution from employee
pension benefit costs
employer FICA
unemployment tax
6.) Which of the following isnota component of a payroll system?
payroll sinking fund
payroll bank account
payroll record
employee earnings record
7.) Richard and Linda are the only two employees of Carolina Company. In January, 2013, Richard's gross pay was $5,500 and Linda's gross pay was $5,200. Each employee pays federal income tax equal to 25% of gross pay. In addition, Linda pays $200 for insurance premiums and Richard pays $225. Each has $25 withheld for life insurance premiums. Assume a FICA tax rate of 8% on all earnings, a federal unemployment tax rate of 0.8%, and a state unemployment tax rate of 5.4%. The unemployment taxes are based on the first $7,000 of employee annual earnings.
The entry to record the payroll for January would include a
credit to state unemployment tax payable for $578.
credit to FICA tax payable for $856.
debit to salary payable to employees for $6,694.
credit to federal unemployment tax payable for $86
8.) Promissory notes due within one year that a company owes are called
promissory payable.
long-term accounts payable.
short-term notes receivable.
short-term notes payable.
9.) Which of the following isnota control for safeguarding payroll disbursements?
Personnel department employees and payroll department employees have combined responsibilities.
Personnel department employees' and payroll department employees' responsibilities are separated.
A photo identification is required when payroll checks are distributed.
A formal timekeeping system is used.
10.) Two categories of payroll deductions are required deductions and ___ deductions.
forgiven
mandatory
restricted
optional
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