Question 1

The Social Security Tax Payable account will normally have a(n)
A) debit balance.
B) credit balance.
C) debit or credit balance depending on the timing of payments.
D) zero balance.

Accepted Answer

The Social Security Tax Payable account is a liability account, which typically has a credit balance, indicating amounts owed.

Question 2

The amount debited to Wages Expense when a payroll is recorded is the
A) regular gross earnings.
B) earnings after taxes.
C) net earnings.
D) total gross earnings.

Accepted Answer

The amount debited to Wages Expense when a payroll is recorded is the total gross earnings of the employees before any deductions such as taxes or benefits are taken out.

Question 3

Identify the list of accounts below that would normally all have a credit balance.
A) Salaries Payable,Employee Income Tax Payable,Owner's Capital
B) Salaries Payable,Prepaid Insurance,Medicare Tax Payable
C) Wages Expense,Salaries Payable,Equipment
D) Employee Income Tax Payable,Social Security Tax Payable,Salaries Expense

Accepted Answer

Liabilities like Salaries Payable and Employee Income Tax Payable, and equity accounts like Owner's Capital, typically have credit balances.

Question 4

Identify the list of accounts below that would normally all have a debit balance.
A) Salaries Expense,Salaries Payable,Cash
B) Salaries Payable,Medicare Tax Payable,Office Salaries Expense
C) Cash,Salaries Expense,Insurance Expense
D) Employee Income Tax Payable,Social Security Tax Payable,Wages Expense

Accepted Answer

Cash, Salaries Expense, and Insurance Expense are accounts that typically have a debit balance. Expenses and assets like cash are increased with debits.

Question 5

Ramon Gonzalez's gross pay for the week was $700.He had deductions of $85 for federal income tax,$43.40 for social security tax,$10.15 for Medicare tax as well as $5 for union dues.The journal entry to record his salary would include:
A) a debit to Employee Income Tax Payable for $85
B) a credit to Employee Income Tax Payable for $85
C) a debit to Salaries Payable for $700
D) a debit to Salaries Expense for $556.45

Accepted Answer

The journal entry to record salary deductions includes a credit to Employee Income Tax Payable for the amount deducted for federal income tax, which is $85.

Question 6

Jason McCurdy has a regular hourly rate of $10.75.During a two week period,he worked 80 hours and had deductions of $110 for federal income tax,$53.50 for social security tax,and $12.50 for Medicare tax.His net pay was
A) $860.
B) $684.
C) $750.
D) $794.

Accepted Answer

Jason's gross pay is calculated by multiplying his hourly rate by the number of hours worked: $10.75 * 80 = $860. After deductions ($110 + $53.50 + $12.50 = $176), his net pay is $860 - $176 = $684.

Question 7

For which of the following taxes is there no limit on the amount of annual earnings subject to the tax?
A) Federal unemployment tax
B) Social Security tax
C) Federal income tax
D) State unemployment tax

Accepted Answer

Federal income tax does not have a cap on the amount of earnings subject to the tax; it applies to all income levels.

Question 8

The employer records the amount of federal income tax withheld as:
A) an asset.
B) a payroll tax expense.
C) a liability.
D) an expense.

Accepted Answer

The amount of federal income tax withheld from an employee's paycheck is a liability because the employer is required to hold onto those funds and eventually pay them to the government on behalf of the employee. It is not an asset because it does not represent something of value that the employer owns, and it is not an expense because it is not a direct cost of running the business. It is considered a payroll tax expense in the sense that the employer is responsible for calculating and remitting the proper amount of taxes, but specifically, the amount of federal income tax withheld is a liability.

Question 9

It is best not to pay wages and salaries by
A) cash.
B) a check from the regular cash account.
C) the direct-deposit method.
D) a check from the payroll cash account.

Accepted Answer

The answer of It is best not to pay wages...

Question 10

When checks are issued to employees after the entry to record the payroll has been made,the accountant would
A) debit Salaries Expense,debit Wages Expense,and credit Cash.
B) debit Salaries and Wages Payable,debit Social Security Tax Payable,debit Medicare Tax Payable,debit Employee Income Tax Payable,and credit Cash.
C) debit Salaries and Wages Payable and credit Cash.
D) debit Salaries and Wages Payable and credit Salaries Expense and Wages Expense.

Accepted Answer

When checks are issued to employees after the entry to record the payroll has been made, the Accounts Payable account (Salaries and Wages Payable) is debited, and the Cash account is credited. Option A is incorrect because both Salaries Expense and Wages Expense do not need to be debited as the expense has already been recorded during the entry to record payroll. Option B is incorrect because it includes additional accounts that are not necessary for this transaction. Option D is incorrect because only Salaries and Wages Payable need to be debited - debiting the expense accounts as well would result in double-counting the expenses.

Question 11

Lacy Crawford has a regular hourly rate of $21.50.In a week when she worked 40 hours and had deductions of $110 for federal income tax,$53.50 for social security tax,and $12.50 for Medicare tax,her net pay was
A) $860.
B) $684.
C) $750.
D) $794.

Accepted Answer

Lacy's gross pay for 40 hours is 40 * $21.50 = $860. After deductions ($110 + $53.50 + $12.50 = $176), her net pay is $860 - $176 = $684.

Question 12

Lila Harrison's is the sole employee of ABC Grocers.Her gross pay for the week was $400.She had deductions of $50 for federal income tax,$25 for social security tax,and $5.80 for Medicare tax.The journal entry to record her salary would include:
A) a debit to Salaries Expense for $319.20
B) a debit to Salaries Expense for $400
C) a debit to Salaries Payable for $319.20
D) a credit to Salaries Payable for $400

Accepted Answer

The journal entry to record Lila's salary would include a debit to Salaries Expense for the full gross pay amount of $400, as this represents the total expense incurred by the company for her salary.

Question 13

Lisa Ramos has a regular hourly rate of $10.75.In a week when she worked 40 hours and had deductions of $55 for federal income tax,$26.75 for social security tax,and $6.25 for Medicare tax,her net pay was
A) $430.
B) $342.
C) $375.
D) $397.

Accepted Answer

Lisa's gross pay for 40 hours at $10.75 per hour is $430. After deductions of $55, $26.75, and $6.25, her net pay is $342.

Question 14

Abe Carter had gross earnings of $6,000 for the pay period ending 11/30.His total gross earnings as of 11/15 were $112,000.If Social Security taxes are 6.2% on a maximum earnings of $113,700 per year and Medicare tax is 1.45% on all earnings,the journal entry to record his earnings for the period ending 11/30 would include:
A) a credit to Salaries Expense for $6,000
B) a credit to Medicare Tax Payable for $870.00
C) a credit to Social Security Tax Payable for $87.00
D) a credit to Medicare Tax Payable for $87.00

Accepted Answer

The answer of Abe Carter had gross earnings of $6,000...

Question 15

Each type of deduction made from the employees' earnings is recorded in a separate
A) asset account.
B) expense account.
C) liability account.
D) revenue account.

Accepted Answer

Deductions from employees' earnings, such as taxes and benefits, are recorded in liability accounts because they represent amounts owed to third parties.

Question 16

Jill Monroe earns $25 per hour.She worked 48 hours this pay period and receives time-and-a-half for any hours worked over 40 hours per week.Jill's gross earnings are:
A) $1,200
B) $1,300
C) $1,100
D) $1,920

Accepted Answer

Jill earns $25 per hour for the first 40 hours, which is $1,000. For the 8 hours of overtime, she earns $37.50 per hour (time-and-a-half), which is $300. Therefore, her total gross earnings are $1,300.

Question 17

Which of the following is NOT typically an employee payroll withholding?
A) federal income taxes
B) state unemployment taxes
C) union dues
D) medical insurance

Accepted Answer

The answer of Which of the following is NOT typically...

Question 18

All details related to an employee's earnings,deductions,and net pay throughout the year would be found in
A) the payroll register.
B) the individual earnings record.
C) the general journal.
D) the Wages Expense account in the general ledger.

Accepted Answer

The individual earnings record is a document that contains all details related to an employee's earnings, deductions, and net pay throughout the year, including information on each pay period. The payroll register is a document that summarizes employee payroll information for each pay period, but it does not contain all the detailed information on the individual level. The general journal is a record of all financial transactions for a company, but it does not specifically contain employee payroll information. The Wages Expense account in the general ledger is a summary account and does not contain detailed employee payroll information.

Question 19

Sabrina Duncan had gross earnings for the pay period ending 10/15/16 of $5,785.Her total gross earnings as of 9/30/16 were $111,400.If Social Security taxes are 6.2% on a maximum earnings of $113,700 per year,Sabrina's Social Security withheld from her 10/15/16 paycheck would be:
A) $358.67
B) $142.60
C) $216.07
D) $198.88

Accepted Answer

Sabrina's total earnings after the 10/15/16 paycheck would be $111,400 + $5,785 = $117,185. However, Social Security tax is only applied up to $113,700. Therefore, the taxable amount for this paycheck is $113,700 - $111,400 = $2,300. The Social Security tax withheld is 6.2% of $2,300, which equals $142.60.

Question 20

The column totals in a payroll register
A) are used in the journal entry to record the payroll.
B) are posted directly to the general ledger accounts.
C) are unnecessary.
D) are used at the end of the year to record payroll taxes owed to the IRS.

Accepted Answer

The column totals in a payroll register are used in the journal entry to record the payroll. This is because the payroll register provides a summary of all the payroll transactions that have occurred during a specific period, and the column totals help to reconcile the payroll accounts and ensure that the payroll entries in the general ledger are accurate.

Quiz 10: Payroll Computations, Records, and Payment

The Social Security Tax Payable account will normally have a(n)

The amount debited to Wages Expense when a payroll is recorded is the

Identify the list of accounts below that would normally all have a credit balance.

Identify the list of accounts below that would normally all have a debit balance.

Ramon Gonzalez's gross pay for the week was $700.He had deductions of $85 for federal income tax,$43.40 for social security tax,$10.15 for Medicare tax as well as $5 for union dues.The journal entry to record his salary would include:

Jason McCurdy has a regular hourly rate of $10.75.During a two week period,he worked 80 hours and had deductions of $110 for federal income tax,$53.50 for social security tax,and $12.50 for Medicare tax.His net pay was

For which of the following taxes is there no limit on the amount of annual earnings subject to the tax?

The employer records the amount of federal income tax withheld as:

It is best not to pay wages and salaries by

When checks are issued to employees after the entry to record the payroll has been made,the accountant would

Lacy Crawford has a regular hourly rate of $21.50.In a week when she worked 40 hours and had deductions of $110 for federal income tax,$53.50 for social security tax,and $12.50 for Medicare tax,her net pay was

Lila Harrison's is the sole employee of ABC Grocers.Her gross pay for the week was $400.She had deductions of $50 for federal income tax,$25 for social security tax,and $5.80 for Medicare tax.The journal entry to record her salary would include:

Lisa Ramos has a regular hourly rate of $10.75.In a week when she worked 40 hours and had deductions of $55 for federal income tax,$26.75 for social security tax,and $6.25 for Medicare tax,her net pay was

Each type of deduction made from the employees' earnings is recorded in a separate

Jill Monroe earns $25 per hour.She worked 48 hours this pay period and receives time-and-a-half for any hours worked over 40 hours per week.Jill's gross earnings are:

Which of the following is NOT typically an employee payroll withholding?

All details related to an employee's earnings,deductions,and net pay throughout the year would be found in

Sabrina Duncan had gross earnings for the pay period ending 10/15/16 of $5,785.Her total gross earnings as of 9/30/16 were $111,400.If Social Security taxes are 6.2% on a maximum earnings of $113,700 per year,Sabrina's Social Security withheld from her 10/15/16 paycheck would be:

The column totals in a payroll register