Record each answer in the space provided. Two points are allowed for each answer; total, 4 points.

	An hourly employee of a firm receives time-and-a-half for hours worked in excess of 40 per week. She worked 43 hours during the week. Her hourly wage rate is $11.00 per hour. Her earnings for the week were ____________________.
	A saleswoman receives an annual salary of $35,000 plus 7 percent of all sales during the year in excess of $100,000. Her sales for the year total $186,000. Her total earnings for the year amount to ________________________.

For each employee listed below, determine the employer?s tax liability for the payroll period, as well as the totals for each employee and for each tax. Assume the following tax rates:

Social Security, 4.2 percent (.042), with maximum taxable earnings of $106,800

Medicare, 1.45 percent (.0145), with all earnings taxable

State unemployment, 5.4 percent (.054), with maximum taxable earnings of $7,000

Federal unemployment, .8 percent (.008), with maximum taxable earnings of $7,000

One point is allowed for each individual amount in the Amount of Tax columns; total, 16 points.

Employee	Beginning Cumulative Earnings (before this payroll)	Payroll for Current Payroll Period	Amount of Tax	Total Taxes on Employer
Social Security Taxes	Medicare Taxes	State Unemployment Taxes	Federal Unemployment Taxes
Ashton	106,400	3,200
Benson	39,350	1,900
Clark	14,290	1,100
Diggs	6,750	900
Totals	166,790	7,100

Complete the payroll register given below. Assume that employment taxes are as follows: Social Security, 4.2 percent (..042); Medicare, 1.45 percent (.0145), all taxable earnings; state unemployment, 5.4 percent (.054); federal unemployment, .8 percent (.008). Prepare journal entries for items a through e below. Omit explanations. Two points are allowed for each journal line; total, 32 points.

Total Earnings	Taxable Earnings	Deductions	Net Pay	Wages Expense Debited
State Unemp.	Federal Unemp.	Social Security	Medicare	Social Security	Medicare	Federal Inc. Tax	Union Dues	Total
96,000	32,000	32,000	87,000	96,000			14,540	1,350

a. Journalize the payroll entry in general journal form payable to a payroll bank account.

Description	Debit	Credit

b. Journalize the entry to pay the employees.

Description	Debit	Credit

c. Journalize the entry to record the employer payroll taxes.

Description	Debit	Credit

d. Journalize the entry for the issuance of a check for the payment of the employees' federal income tax and FICA tax (employee and employer).

Description	Debit	Credit

e. Journalize the entry for issuance of a check for payment of state unemployment taxes.

Description	Debit	Credit

B. Hayes deposits all receipts in the bank on the day they are received and makes all payments by check. On June 30, the Ledger Balance of Cash is $2,433 after all posting is completed. The bank statement dated June 30 shows a balance of $2,687. You are given the following information to prepare a bank reconciliation in the space provided below. Two points are allowed for each line; total, 12 points.

a.	Outstanding checks, $305.
b.	A deposit of $463 was placed in the night depository on June 30 and did not appear on the bank statement.
c.	The bank included a debit memo for service charges, $25.
d.	An NSF check for $60 from E. Bain, a charge customer, was returned by the bank.
e.	The bank collected a note for $497 ($450 principal plus $47 interest).

Bank Statement Balance
Add:
Deduct:
Adjusted Bank Statement Balance
Ledger Balance of Cash
Add:
Add:
Deduct:
Deduct:
Adjusted Ledger Balance of Cash

Journalize necessary entries from Part 4 in general journal form. The debit memo has not been recorded. Two points for each line; total, 14 points.

Description	Debit	Credit

Complete each of the following statements by placing the proper word or words in the space provided. One point is allowed for each answer; total, 6 points.

1.	An amount of an employee?s annual earnings not subject to income tax is called a(n) ________________________.
2.	A supplementary record for each employee, showing personal payroll data and yearly cumulative earnings, deductions, and net pay, is called a(n) _______________________________________________.
3.	The total amount of an employee?s pay before any deductions is called ________________________.
4.	Checks that have been issued by the depositor and have been cashed at the bank by the time the bank issues its statement are called ________________________.
5.	The process by which the payee transfers ownership of a check to another party is called a(n) ________________________.
6.	One who works for compensation under the direction and control of an employer is called a(n) ________________________.

Record entries in general journal form for the following. Omit explanations. Two points are allowed for each line; total, 16 points.

a. Established a petty cash fund, $125.

Description	Debit	Credit

b. The cash register tape indicates $891 as income from services rendered. The cash count, including the $100 change fund, is $988.

Description	Debit	Credit

c. Reimbursed the petty cash fund for the following expenditures: supplies expense, $30; miscellaneous expenses, $20.

Description	Debit	Credit

CHAPTER QUIZ 4A (Chapters 6-8) 1. Record each answer in the space provided. Two points are allowed for each answer; total, 4 points. a. An hourly employee of a firm receives time-and-a-half for hours worked in excess of 40 per week. She worked 43 hours during the week. Her hourly wage rate is $11.00 per hour. Her earnings for the week were ____________________. b. A saleswoman receives an annual salary of $35,000 plus 7 percent of all sales during the year in excess of $100,000. Her sales for the year total $186,000. Her total earnings for the year amount to ________________________. 2. For each employee listed below, determine the employer's tax liability for the payroll period, as well as the totals for each employee and for each tax. Assume the following tax rates: Social Security, 4.2 percent (.042), with maximum taxable earnings of $106,800 Medicare, 1.45 percent (.0145), with all earnings taxable State unemployment, 5.4 percent (.054), with maximum taxable earnings of $7,000 Federal unemployment, .8 percent (.008), with maximum taxable earnings of $7,000 One point is allowed for each individual amount in the Amount of Tax columns; total, 16 points. Employee Ashton Benson Clark Diggs Totals Beginning Amount of Tax Cumulative Payroll for State Federal Earnings Current Payroll Social Security Unemployment Unemployment (before this Period Taxes Medicare Taxes Taxes Taxes payroll) 106,400 3,200 39,350 1,900 14,290 1,100 6,750 900 166,790 7,100 Total Taxes on Employer 3. Complete the payroll register given below. Assume that employment taxes are as follows: Social Security, 4.2 percent (..042); Medicare, 1.45 percent (.0145), all taxable earnings; state unemployment, 5.4 percent (.054); federal unemployment, .8 percent (.008). Prepare journal entries for items a through e below. Omit explanations. Two points are allowed for each journal line; total, 32 points. Taxable Earnings Total Earnings 96,000 State Unemp. 32,000 Federal Social Social Unemp. Security Medicare Security 32,000 87,000 96,000 Deductions Medicare Federal Inc. Tax 14,540 Union Dues 1,350 Net Pay Total a. Journalize the payroll entry in general journal form payable to a payroll bank account. Description Debit Credit b. Journalize the entry to pay the employees. Description Debit Wages Expense Debited Credit Copyright Cengage Learning. All rights reserved. 2 Chapter Achievement Test: 4A c. Journalize the entry to record the employer payroll taxes. Description Debit Credit d. Journalize the entry for the issuance of a check for the payment of the employees' federal income tax and FICA tax (employee and employer). Description Debit Credit e. Journalize the entry for issuance of a check for payment of state unemployment taxes. Description Debit Credit 4. B. Hayes deposits all receipts in the bank on the day they are received and makes all payments by check. On June 30, the Ledger Balance of Cash is $2,433 after all posting is completed. The bank statement dated June 30 shows a balance of $2,687. You are given the following information to prepare a bank reconciliation in the space provided below. Two points are allowed for each line; total, 12 points. a. b. c. d. e. Outstanding checks, $305. A deposit of $463 was placed in the night depository on June 30 and did not appear on the bank statement. The bank included a debit memo for service charges, $25. An NSF check for $60 from E. Bain, a charge customer, was returned by the bank. The bank collected a note for $497 ($450 principal plus $47 interest). Bank Statement Balance Add: Deduct: Adjusted Bank Statement Balance Ledger Balance of Cash Add: Add: Deduct: Copyright Cengage Learning. All rights reserved. Chapter Achievement Test: 4A 3 Deduct: Adjusted Ledger Balance of Cash 5. Journalize necessary entries from Part 4 in general journal form. The debit memo has not been recorded. Two points for each line; total, 14 points. Description Debit Credit 6. Complete each of the following statements by placing the proper word or words in the space provided. One point is allowed for each answer; total, 6 points. 1. An amount of an employee's annual earnings not subject to income tax is called a(n) ________________________. 2. A supplementary record for each employee, showing personal payroll data and yearly cumulative earnings, deductions, and net pay, is called a(n) _______________________________________________. 3. The total amount of an employee's pay before any deductions is called ________________________. 4. Checks that have been issued by the depositor and have been cashed at the bank by the time the bank issues its statement are called ________________________. 5. The process by which the payee transfers ownership of a check to another party is called a(n) ________________________. 6. One who works for compensation under the direction and control of an employer is called a(n) ________________________. 7. Record entries in general journal form for the following. Omit explanations. Two points are allowed for each line; total, 16 points. a. Established a petty cash fund, $125. Description Debit Credit b. The cash register tape indicates $891 as income from services rendered. The cash count, including the $100 change fund, is $988. Description Debit Credit c. Reimbursed the petty cash fund for the following expenditures: supplies expense, $30; miscellaneous expenses, $20. Description Debit Credit Copyright Cengage Learning. All rights reserved