Question 33(Mandatory)(2.5 points)

William Corp. pays its employees every two weeks. Employee wages earned over a two-week period is $250,000. All wages are subject to social security and Medicare taxes, while $50,000 of wages are subject to federal and state unemployment taxes. Tax rates are the following:

Social security tax 6.0%

Medicare tax 1.5%

State unemployment compensation tax 5.4%

Federal unemployment compensation tax 0.8%

Additionally, the total amount withheld from wages for federal income taxes is $75,000 and the total amount withheld for state income taxes is $12,500.

________________________________________

When William Corp. records the journal entry to recognizepayrolltax expenseevery two weeks,Wage Expensewill be:

Question 33 options:

Debited for $12,500

Credited for $75,000

Neither debited nor credited

Debited for $75,000

Credited for $12,500

Question 34(Mandatory)(2.5 points)

William Corp. pays its employees every two weeks. Employee wages earned over a two-week period is $250,000. All wages are subject to social security and Medicare taxes, while $50,000 of wages are subject to federal and state unemployment taxes. Tax rates are the following:

Social security tax 6.0%

Medicare tax 1.5%

State unemployment compensation tax 5.4%

Federal unemployment compensation tax 0.8%

Additionally, the total amount withheld from wages for federal income taxes is $75,000 and the total amount withheld for state income taxes is $12,500.

________________________________________

When William Corp. records the journal entry to recognizepayrolltax expenseevery two weeks,Employees' Federal Income Tax Payablewill be:

Question 34 options:

Debited for $75,000

Debited for $12,500

Credited for $12,500

Neither debited nor credited

Credited for $75,000

Question 35(Mandatory)(2.5 points)

William Corp. pays its employees every two weeks. Employee wages earned over a two-week period is $250,000. All wages are subject to social security and Medicare taxes, while $50,000 of wages are subject to federal and state unemployment taxes. Tax rates are the following:

Social security tax 6.0%

Medicare tax 1.5%

State unemployment compensation tax 5.4%

Federal unemployment compensation tax 0.8%

Additionally, the total amount withheld from wages for federal income taxes is $75,000 and the total amount withheld for state income taxes is $12,500.

________________________________________

When William Corp. records the journal entry to recognizepayrolltax expenseevery two weeks,Employees' State Income Tax Payablewill be:

Question 35 options:

Debited for $12,500

Neither debited nor credited

Credited for $12,500

Credited for $75,000

Debited for $75,000

Contingent Liabilities

Question 36(Mandatory)(2 points)

If the likelihood of a contingent liability occurring isprobableand the amount isestimable, the contingent liability is:

Question 36 options:

disclosed in the notes to the financials

not recognized or disclosed in the financials

recognized as a liability in the financials

none of these options

Question 37(Mandatory)(2 points)

If the likelihood of a contingent liability occurring isprobablebut the amount isnotestimable, the contingent liability is:

Question 37 options:

none of these options

disclosed in the notes to the financials

recognized as a liability in the financials

not recognized or disclosed in the financials

Question 38(Mandatory)(2 points)

If the likelihood of a contingent liability occurring isreasonably possible, the contingent liability is:

Question 38 options:

not recognized or disclosed in the financials

none of these options

disclosed in the notes to the financials

recognized as a liability in the financials

Question 39(Mandatory)(2 points)

If the likelihood of a contingent liability occurring isremote, the contingent liability is:

Question 39 options:

not recognized or disclosed in the financials

recognized as a liability in the financials

disclosed in the notes to the financials

none of these options