Question 1

What are the General Journal entries that should appear on each pay date?
A)Employee pay accrual and employee pay disbursement
B)Employee pay remittance and voluntary deduction remittance
C)Employee pay disbursement and voluntary deduction remittance
D)Employee pay recording and employer share payroll taxes recording

Accepted Answer

The answer of What are the General Journal entries that...

Question 2

McHale Enterprises has the following incomplete General Journal entry for the most recent pay date:
What is the amount of the 401(k) contributions for the pay date?
A)$2,253.00
B)$15,298.22
C)$12,576.05
D)$9,215.38

Accepted Answer

The answer of McHale Enterprises has the following incomplete General...

Question 3

In which order are transactions listed in the General Journal?
A)Chronologically
B)Order of importance
C)Alphabetically
D)Numerically

Accepted Answer

Transactions in the General Journal are listed chronologically, meaning they are recorded in the order that they occur over time.

Question 4

Which of the following is an example of an asset account?
A)Payroll Tax Expense
B)Revenue
C)Salaries Payable
D)Cash

Accepted Answer

Cash is an asset because it is a resource that can be used to generate future economic benefits.

Question 5

Kierofree Air Tours has the following payroll data for its November 5 pay date:

How much is the net pay?
A)$199,023.00
B)$124,660.35
C)$185,216.26
D)$142,578.94

Accepted Answer

The answer of Kierofree Air Tours has the following payroll...

Question 6

Didier and Sons had the following employer's share payroll tax general journal entry for the May 5 pay date:

What is the amount of the Social Security tax payable?
A)$1,582.39
B)$2,572.59
C)$1,715.56
D)$1,875.98

Accepted Answer

The answer of Didier and Sons had the following employer's...

Question 7

When a ﬁrm has wages earned but not yet paid at the end of a ﬁnancial reporting period, what must it do to recognize the liabilities and expenses?
A)It must credit the asset accounts for the appropriate payroll amounts.
B)It must create an adjusting entry to recognize the payroll accrual.
C)It must pay its employees for the wages earned as of that date.
D)It must wait until the next ﬁnancial period to record the payroll data.

Accepted Answer

The firm must create an adjusting entry to recognize the payroll accrual. This involves debiting the wage expense account to recognize the expense incurred and crediting a liability account (such as wages payable or accrued wages) to recognize the obligation to pay the employees in the future. This ensures that the financial statements accurately reflect the company's financial position and performance for the period.

Question 8

Rushing River Boats has the following data in its Social Security tax payable General Ledger account:

It is a monthly schedule depositor. What entry should appear in the General Ledger to reﬂect the tax remittance on February 15?
A)Debit $1,620
B)Credit $1,620
C)Debit $420
D)Credit $420

Accepted Answer

The answer of Rushing River Boats has the following data...

Question 9

In the following payroll transaction, what is the amount of the net pay?

A)$399,472.63
B)$2,349,839.00
C)$93,993.56
D)$1,551,383.86

Accepted Answer

The answer of In the following payroll transaction, what is...

Question 10

Dooley Publishing has the following payroll data for its July 1 pay date:

How much Federal withholding tax was deducted from employees' pay?
A)$42,083.87
B)$29,391.98
C)$15,203.14
D)$32,115.48

Accepted Answer

The answer of Dooley Publishing has the following payroll data...

Question 11

Which of the following is an example of a liability account?
A)Cash
B)Owners' Capital
C)Salaries Payable
D)Wages Expense

Accepted Answer

Salaries Payable is a liability account, representing amounts owed to employees for work performed but not yet paid.

Question 12

What is the term for transferring data from the General Journal to the General Ledger?
A)Ledgering
B)Posting
C)Cross-referencing
D)Transcribing

Accepted Answer

Posting is the process of transferring information from the General Journal to the General Ledger in accounting.

Question 13

The following data is for the January 19 pay date for Waryzbok Inc.:

Which of the following represents the missing Social Security and Medicare taxes, assuming that the health insurance is qualiﬁed under Section 125?
A)Social Security tax, $204.15; Medicare tax, $792.35
B)Social Security tax, $792.35; Medicare tax, $204.15
C)Social Security tax, $746.66; Medicare tax, $174.62
D)Social Security tax, $188.31; Medicare tax, $805.19

Accepted Answer

The answer of The following data is for the January...

Question 14

Which of these accounts is increased by a debit? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
A)Expenses
B)Revenue
C)Assets
D)Owners' Capital

Accepted Answer

Expenses and assets are increased by debits in accounting. Expenses increase with debits because they represent costs to the business, reducing net income. Assets, representing resources owned by the business, also increase with debits. Revenue and owners' capital, on the other hand, are increased by credits.

Question 15

In the following General Journal transaction, to what do the numbers 101 and 301 refer?

A)General Ledger account numbers
B)Transaction numbers
C)Employee numbers
D)General journal numbers

Accepted Answer

The answer of In the following General Journal transaction, to...

Question 16

Which of the following is an example of a liability account?
A)Payroll Taxes Expense
B)FUTA Payable
C)Salaries and Wages Expense
D)Cash

Accepted Answer

FUTA Payable is a liability account because it represents an amount the company owes to the government for federal unemployment taxes, which has not yet been paid.

Question 17

Which of these accounts is increased by a credit? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
A)Owners' capital
B)Revenue
C)Assets
D)Expenses

Accepted Answer

Owners' capital and revenue accounts are increased by credits. In double-entry bookkeeping, credits increase equity and revenue accounts and decrease asset and expense accounts.

Question 18

On December 1, 20XX, Riley Sanders invested $250,000 to open Sanders Enterprises. What is the General Journal entry to record this transaction?
A)Debit R. Sanders Capital, $250,000; Credit Cash, $250,000
B)Debit Cash, $250,000; Credit Revenue, $250,000
C)Debit Revenue, $250,000; Credit Cash, $250,000
D)Debit Cash, $250,000; Credit R. Sanders Capital, $250,000

Accepted Answer

When an owner invests cash in a business, the cash account (an asset) increases, so it is debited. The owner's equity account (in this case, R. Sanders Capital) increases as well, so it is credited.

Question 19

Zipperle Company has the following payroll information for the pay period ending September 18, 20XX:

Which items would be debited in the General Journal entry to record the employees' share of the payroll?
A)Net pay
B)Gross pay
C)Garnishment
D)401(k) contributions

Accepted Answer

The answer of Zipperle Company has the following payroll information...

Question 20

If a ﬁrm accrues the payroll due but not paid at the end of a ﬁnancial period, what should it do on the ﬁrst day of the next ﬁnancial period?
A)It should create a reminder about the accrual to ensure accuracy of computations on the next pay date.
B)It should make a note to create the reversing entry at the end of the next ﬁnancial period.
C)It should disburse the accrued pay to the employees.
D)It should create a reversing entry in the General Journal.

Accepted Answer

Creating a reversing entry on the first day of the next financial period negates the accrual made at the end of the previous period, simplifying the accounting process once the payroll is actually disbursed.

Quiz 7: Payroll Project

What are the General Journal entries that should appear on each pay date?

McHale Enterprises has the following incomplete General Journal entry for the most recent pay date: What is the amount of the 401(k) contributions for the pay date?

In which order are transactions listed in the General Journal?

Which of the following is an example of an asset account?

Kierofree Air Tours has the following payroll data for its November 5 pay date: How much is the net pay?

Didier and Sons had the following employer's share payroll tax general journal entry for the May 5 pay date: What is the amount of the Social Security tax payable?

When a ﬁrm has wages earned but not yet paid at the end of a ﬁnancial reporting period, what must it do to recognize the liabilities and expenses?

Rushing River Boats has the following data in its Social Security tax payable General Ledger account: It is a monthly schedule depositor. What entry should appear in the General Ledger to reﬂect the tax remittance on February 15?

In the following payroll transaction, what is the amount of the net pay?

Dooley Publishing has the following payroll data for its July 1 pay date: How much Federal withholding tax was deducted from employees' pay?

Which of the following is an example of a liability account?

What is the term for transferring data from the General Journal to the General Ledger?

The following data is for the January 19 pay date for Waryzbok Inc.: Which of the following represents the missing Social Security and Medicare taxes, assuming that the health insurance is qualiﬁed under Section 125?

In the following General Journal transaction, to what do the numbers 101 and 301 refer?

Which of the following is an example of a liability account?

On December 1, 20XX, Riley Sanders invested $250,000 to open Sanders Enterprises. What is the General Journal entry to record this transaction?

Zipperle Company has the following payroll information for the pay period ending September 18, 20XX: Which items would be debited in the General Journal entry to record the employees' share of the payroll?

If a ﬁrm accrues the payroll due but not paid at the end of a ﬁnancial period, what should it do on the ﬁrst day of the next ﬁnancial period?