FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 11: Current Liabilities and Payroll

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 91

Essay

Review LaterAdd Note

Review Later

Journalize the following entries on the books of the borrower and creditor. Label accordingly. (Assume a 360-day year is used for interest calculations.)

Correct Answer

verified

_TB2085_00...

View Answer

Show Answer

Question 92

True/False

Review LaterAdd Note

Review Later

The journal entry to record the cost of warranty repairs that were incurred during the current period, but related to sales made in prior years, includes a debit to Warranty Expense.

A) True
B) False

Correct Answer

verified

Show Answer

Question 93

Essay

Review LaterAdd Note

Journalize the following entries on the books of Winston Co. for August 1, September 1, and November 30. (Assume a 360-day year is used for interest calculations.)

The payroll register of Seaside Architecture Company indicates $870 of Social Security and $217 of Medicare tax withheld on total salaries of $14,500 for the period. Assume earnings subject to state and federal unemployment compensation taxes are $5,250. at the federal rate of 0.8% and state rate of 5.4%. Provide the journal entry to record the payroll tax expense for the period.

The payroll register of Seaside Architecture Company indicates $970 of Social Security and $257 of Medicare tax withheld on total salaries of $16,500 for the period. Federal withholding for the period totaled $4,235. Provide the journal entry for the period's payroll.

Payroll taxes levied against employers become an employer liability at the time the employee wages are incurred.

The payroll register is a multicolumn form used to assemble the data related for all employees.

An employee receives an hourly rate of $30, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $300; cumulative earnings for year prior to current week, $90,700; social security tax rate, 6.0% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings. What is the net amount to be paid to the employee?

The following totals for the month of February were taken from the payroll register of Arcon Company: How much is the total payroll expense for Arcon Company for this payroll? Assume that the monthly salaries expense remains the same for the entire year and no employees are hired or fired during that time. Based on what you learned in Chapter 11 about payroll taxes, do you expect the total payroll expense to stay the same every month? Explain.

The discount on a note payable is charged to an account that has a normal credit balance.

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