1 Belkin Co provides medical care and insurance benefits to its retirees In the current year, Belkin agrees to contribute 5 of the employees $250,000 gross salaries to a retirement program What is the amount of employee benefits expense for the current period Multiple Choice $25 $100 $250 $12,500 $25,000 2 Employees earn vacation pay at a rate of one day per month The company estimated and must expense $1,500 of accrued vacation benefits for the year Which of the following is the necessary year end adjusting entry to record accrued vacation benefits Multiple Choice Debit Vacation Benefits Expense $1,500 credit Prepaid Vacation $1,500 Debit Vacation Benefits Expense $1,500 credit Vacation Benefits Payable $1,500 Debit Payroll Tax Expense $1,500 credit Payroll Taxes Payable $1,500 Debit Prepaid Vacation Benefits $1,500 credit Vacation Benefits Payable $1,500 Debit Prepaid Benefits Payable $1,500 credit Vacation Benefits Expense $1,500 3 Carson Company sells sporting tickets in advance of the event for $500,000 The journal entry to record the sale is Multiple Choice Debit Prepaid Sales $500,000 credit Sales Revenue $500,000 Debit Cash $500,000 credit Accounts Payable $500,000 Debit Cash $500,000, credit Unearned Ticket Revenue $500,000 Debit Cost of Sales $500,000, credit Inventory $500,000 No journal entry is required 4 All of the following statements regarding uncertainty in liabilities are true except Multiple Choice Liabilities can involve uncertainty in whom to pay A company can create a liability with a known amount even when the holder of the note may not be known until the maturity date A company can have an obligation of a known amount to a known creditor but not know when it must be paid A company only records liabilities when it knows whom to pay, when to pay, and how much to pay Without all three, a liability cannot be recorded 5 An employee earned $4,600 in February working for an employer The FICA tax rate for Social Security is 6 2 of the first $128,400 earned during each calendar year and the FICA tax rate for Medicare is 1 45 of all earnings The employee has $644 in federal income taxes withheld and has voluntary deductions for health insurance of $50 and contributes 10 of gross pay to a retirement plan each month The employer pays the $200 remainder of the health insurance premium and an equal amount of contribution to the retirement fund What is the amount of net pay for the employee for the month of February Multiple Choice $3,094 10 $3,496 00 $3,604 10 $3,446 00 $2,634 10 A company can be aware of an obligation but not know how much will be required to settle it

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1. Belkin Co. provides medical care and insurance benefits to its retirees. In the current year, Belkin agrees to contribute 5% of the employees $250,000

1. Belkin Co. provides medical care and insurance benefits to its retirees. In the current year, Belkin agrees to contribute 5% of the employees $250,000 gross salaries to a retirement program. What is the amount of employee benefits expense for the current period?

Multiple Choice

$25
$100
$250
$12,500
$25,000

2. Employees earn vacation pay at a rate of one day per month. The company estimated and must expense $1,500 of accrued vacation benefits for the year. Which of the following is the necessary year-end adjusting entry to record accrued vacation benefits?

Multiple Choice

Debit Vacation Benefits Expense $1,500; credit Prepaid Vacation $1,500.
Debit Vacation Benefits Expense $1,500; credit Vacation Benefits Payable $1,500.
Debit Payroll Tax Expense $1,500; credit Payroll Taxes Payable $1,500.
Debit Prepaid Vacation Benefits $1,500; credit Vacation Benefits Payable $1,500.
Debit Prepaid Benefits Payable $1,500; credit Vacation Benefits Expense $1,500.

3. Carson Company sells sporting tickets in advance of the event for $500,000. The journal entry to record the sale is:

Multiple Choice

Debit Prepaid Sales $500,000; credit Sales Revenue $500,000.
Debit Cash $500,000; credit Accounts Payable $500,000.
Debit Cash $500,000, credit Unearned Ticket Revenue $500,000.
Debit Cost of Sales $500,000, credit Inventory $500,000.
No journal entry is required.

4. All of the following statements regarding uncertainty in liabilities are true except:

Multiple Choice

Liabilities can involve uncertainty in whom to pay.
A company can create a liability with a known amount even when the holder of the note may not be known until the maturity date.
A company can have an obligation of a known amount to a known creditor but not know when it must be paid.
A company only records liabilities when it knows whom to pay, when to pay, and how much to pay. Without all three, a liability cannot be recorded.

5. An employee earned $4,600 in February working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400 earned during each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The employee has $644 in federal income taxes withheld and has voluntary deductions for health insurance of $50 and contributes 10% of gross pay to a retirement plan each month. The employer pays the $200 remainder of the health insurance premium and an equal amount of contribution to the retirement fund. What is the amount of net pay for the employee for the month of February?

Multiple Choice