Question 1

A pension plan that requires the employer to make annual pension contributions, with no promise to employees regarding future pension payments, is termed

Accepted Answer

A)   funded
B)   unfunded
C)   defined benefit
D)   defined contributionE) B) and C)
F) A) and C)

Question 2

During the first year of operations, a company granted warranties on its products at an estimated cost of $8,500. The product warranty expense should be recorded in the years of the expenditures to repair the products covered by the warranty payments.

Accepted Answer

A) True 
 B)False

Question 3

Use the following key (a-d)  to identify the proper treatment of each contingent liability.
-Event is probable but amount is not estimable

Accepted Answer

A)  Record only
B)  Record and disclose
C)  Disclose only
D)  Do not record or discloseE) A) and B)
F) B) and C)

Question 4

The journal entry used to record the issuance of a discounted note for the purpose of borrowing funds for the business is

Accepted Answer

A)   debit Cash and Interest Expense; credit Notes Payable
B)   debit Cash and Interest Payable; credit Notes Payable
C)   debit Accounts Payable; credit Notes Payable
D)   debit Notes Payable; credit CashE) B) and C)
F) A) and B)

Question 5

Martinez Co. borrowed $50,000 on March 1 of the current year by signing a 60-day, 9%, interest-bearing note. Assuming a 360-day year, when the note is paid on April 30, the entry to record the payment should include a

Accepted Answer

A)   debit to Interest Payable for $750
B)   debit to Interest Expense for $750
C)   credit to Cash for $50,000
D)   credit to Cash for $54,500E) A) and B)
F) All of the above

Question 6

Match each payroll item that follows to the one item (a-f)  that best describes its characteristics.
-State unemployment compensation tax  (SUTA)

Accepted Answer

A)  Amount is limited, withheld from employee only
B)  Amount is limited, withheld from employee and matched by employer
C)  Amount is limited, paid by employer only
D)  Amount is not limited, withheld from employee only
E)  Amount is not limited, withheld from employee and matched by employerF) Amount is not limited, paid by employer onlyG) A) and B)
H) C) and E)

Question 7

Which of the following is included in the employer's payroll taxes?

Accepted Answer

A)   SUTA tax
B)   FUTA tax
C)   social security tax
D)   All of these choicesE) None of the above
F) A) and D)

Question 8

Martin Services Company provides its employees vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $39,500 for the period. The pension plan requires a contribution to the plan administrator equal to 9% of employee salaries. Salaries were $750,000 during the period. Provide the journal entries for 
(a) the vacation pay and 
(b) the pension benefit.

Accepted Answer

The answer of Martin Services Company provides its employees vacation...

Question 9

Use this information for Harris Company to answer the following questions.
​
Assuming no employees are subject to ceilings for their earnings, Harris Company has the following information for the pay period of January 15-31.
​
   Gross payroll $10,000 Federal income tax withheld $1,800 Social security rate 6.0% Federal unemployment tax rate 0.8% Medicare rate 1.5% State unemployment tax rate 5.4%\begin{array} { l r l c } 	ext { Gross payroll } & \$ 10,000 & 	ext { Federal income tax withheld } & \$ 1,800 \	ext { Social security rate } & 6.0 \% & 	ext { Federal unemployment tax rate } & 0.8 \% \	ext { Medicare rate } & 1.5 \% & 	ext { State unemployment tax rate } & 5.4 \%\end{array} Gross payroll  Social security rate  Medicare rate ​$10,0006.0%1.5%​ Federal income tax withheld  Federal unemployment tax rate  State unemployment tax rate ​$1,8000.8%5.4%​  ​
-Assume that social security taxes are payable at a 6.0% rate, Medicare taxes are payable at a 1.5% rate with no maximum earnings, and federal and state unemployment compensation taxes total 4.6% on the first $7,000 of earnings. If an employee earns $2,500 for the current week and the employee's year-to-date earnings before this week were $6,800, what is the total payroll tax related to the current week?

Accepted Answer

A)   $187.50
B)   $196.70
C)   $344.50
D)   $9.20 E) A) and D)
F) None of the above

Question 10

An interest-beating note is a loan in which the lender deducts interest from the amount loaned before the money is advanced to the borrower.

Accepted Answer

A) True 
 B)False

Question 11

The journal entry to record the conversion of a $6,300 account payable to a note payable would be​

Accepted Answer

The answer of The journal entry to record the conversion...

Question 12

The journal entry a company uses to record accrued vacation privileges for its employees at the end of the year is

Accepted Answer

A)   debit Vacation Pay Expense; credit Vacation Pay Payable
B)   debit Vacation Pay Payable; credit Vacation Pay Expense
C)   debit Salaries Expense; credit Cash
D)   debit Salaries Expense; credit Salaries PayableE) All of the above
F) B) and D)

Question 13

A current liability is a debt that is reasonably expected to be paid

Accepted Answer

A)   between 6 and 18 months
B)   out of currently recognized revenues
C)   within one year
D)   out of cash currently on handE) None of the above
F) A) and C)

Question 14

According to a summary of the payroll of Scotland Company, $450,000 was subject to the 6.0% social security tax and $500,000 was subject to the 1.5% Medicare tax. Federal income tax withheld was $98,000. Also, $15,000 was subject to state 
(4.2%) and federal  (0.8%) unemployment taxes.?
(a)Journalize the entry to record the accrual of payroll.
(b)Journalize the entry to record the accrual of payroll taxes.

Accepted Answer

The answer of According to a summary of the payroll...

Question 15

Federal unemployment taxes are paid by the employer and the employee.

Accepted Answer

A) True 
 B)False

Question 16

The journal entry a company uses to record partially funded pension rights for its salaried employees at the end of the year is

Accepted Answer

A)   debit Salaries Expense; credit Cash
B)   debit Pension Expense; credit Unfunded Pension Liability
C)   debit Pension Expense; credit Unfunded Pension Liability and Cash
D)   debit Pension Expense; credit CashE) C) and D)
F) A) and C)

Question 17

Use the following key (a-d)  to identify the proper treatment of each contingent liability.
-Event is probable and amount is estimable

Accepted Answer

A)  Record only
B)  Record and disclose
C)  Disclose only
D)  Do not record or discloseE) A) and C)
F) C) and D)

Question 18

Match each payroll item that follows to the one item (a-f)  that best describes its characteristics.
-Federal unemployment compensation tax  (FUTA)

Accepted Answer

A)  Amount is limited, withheld from employee only
B)  Amount is limited, withheld from employee and matched by employer
C)  Amount is limited, paid by employer only
D)  Amount is not limited, withheld from employee only
E)  Amount is not limited, withheld from employee and matched by employerF) Amount is not limited, paid by employer onlyG) E) and F)
H) D) and E)

Question 19

Assuming a 360-day year, when a $50,000, 90-day, 9% interest-bearing note payable matures, the total payment will be

Accepted Answer

A)   $51,125
B)   $54,500
C)   $1,125
D)   $4,500E) None of the above
F) All of the above

Question 20

Current liabilities are

Accepted Answer

A)   due and receivable within one year
B)   due and to be paid out of current assets within one year
C)   due, but not payable for more than one year
D)   payable if a possible subsequent event occursE) A) and B)
F) All of the above

Exam 11: Current Liabilities and Payroll

Use the following key (a-d) to identify the proper treatment of each contingent liability. -Event is probable and amount is estimable

Correct Answer
verified

The journal entry a company uses to record accrued vacation privileges for its employees at the end of the year is

Correct Answer
verified

Correct Answer
verified

Martinez Co. borrowed $50,000 on March 1 of the current year by signing a 60-day, 9%, interest-bearing note. Assuming a 360-day year, when the note is paid on April 30, the entry to record the payment should include a

Correct Answer
verified

Which of the following is included in the employer's payroll taxes?

Correct Answer
verified

During the first year of operations, a company granted warranties on its products at an estimated cost of $8,500. The product warranty expense should be recorded in the years of the expenditures to repair the products covered by the warranty payments.

Correct Answer
verified

A pension plan that requires the employer to make annual pension contributions, with no promise to employees regarding future pension payments, is termed

Correct Answer
verified

The journal entry to record the conversion of a $6,300 account payable to a note payable would be

Correct Answer
verified

The journal entry used to record the issuance of a discounted note for the purpose of borrowing funds for the business is

Correct Answer
verified

Match each payroll item that follows to the one item (a-f) that best describes its characteristics. -State unemployment compensation tax (SUTA)

Correct Answer
verified

An interest-beating note is a loan in which the lender deducts interest from the amount loaned before the money is advanced to the borrower.

Correct Answer
verified

Match each payroll item that follows to the one item (a-f) that best describes its characteristics. -Federal unemployment compensation tax (FUTA)

Correct Answer
verified

The journal entry a company uses to record partially funded pension rights for its salaried employees at the end of the year is

Correct Answer
verified

Federal unemployment taxes are paid by the employer and the employee.

Correct Answer
verified

Use the following key (a-d) to identify the proper treatment of each contingent liability. -Event is probable but amount is not estimable

Correct Answer
verified

Correct Answer
verified

Assuming a 360-day year, when a $50,000, 90-day, 9% interest-bearing note payable matures, the total payment will be

Correct Answer
verified

Current liabilities are

Correct Answer
verified

A current liability is a debt that is reasonably expected to be paid

Correct Answer
verified

Correct Answer
verified

Exam 11: Current Liabilities and Payroll

Use the following key (a-d) to identify the proper treatment of each contingent liability. -Event is probable and amount is estimable

Correct AnswerverifiedShow Answer

The journal entry a company uses to record accrued vacation privileges for its employees at the end of the year is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Martinez Co. borrowed $50,000 on March 1 of the current year by signing a 60-day, 9%, interest-bearing note. Assuming a 360-day year, when the note is paid on April 30, the entry to record the payment should include a

Correct AnswerverifiedShow Answer

Which of the following is included in the employer's payroll taxes?

Correct AnswerverifiedShow Answer

During the first year of operations, a company granted warranties on its products at an estimated cost of $8,500. The product warranty expense should be recorded in the years of the expenditures to repair the products covered by the warranty payments.

Correct AnswerverifiedShow Answer

A pension plan that requires the employer to make annual pension contributions, with no promise to employees regarding future pension payments, is termed

Correct AnswerverifiedShow Answer

The journal entry to record the conversion of a $6,300 account payable to a note payable would be​

Correct AnswerverifiedShow Answer

The journal entry used to record the issuance of a discounted note for the purpose of borrowing funds for the business is

Correct AnswerverifiedShow Answer

Match each payroll item that follows to the one item (a-f) that best describes its characteristics. -State unemployment compensation tax (SUTA)

Correct AnswerverifiedShow Answer

An interest-beating note is a loan in which the lender deducts interest from the amount loaned before the money is advanced to the borrower.

Correct AnswerverifiedShow Answer

Match each payroll item that follows to the one item (a-f) that best describes its characteristics. -Federal unemployment compensation tax (FUTA)

Correct AnswerverifiedShow Answer

The journal entry a company uses to record partially funded pension rights for its salaried employees at the end of the year is

Correct AnswerverifiedShow Answer

Federal unemployment taxes are paid by the employer and the employee.

Correct AnswerverifiedShow Answer

Use the following key (a-d) to identify the proper treatment of each contingent liability. -Event is probable but amount is not estimable

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Assuming a 360-day year, when a $50,000, 90-day, 9% interest-bearing note payable matures, the total payment will be

Correct AnswerverifiedShow Answer

Current liabilities are

Correct AnswerverifiedShow Answer

A current liability is a debt that is reasonably expected to be paid

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The journal entry to record the conversion of a $6,300 account payable to a note payable would be

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified