FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 10: Current Liabilities and Payroll

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

Multiple Choice

Review LaterAdd Note

Review Later

Most employers are levied a tax on payrolls for

A) sales tax
B) medical insurance premiums
C) federal unemployment compensation tax
D) union dues

E) All of the above
F) A) and B)

Correct Answer

verified

Show Answer

Question 42

True/False

Review LaterAdd Note

Review Later

Depending upon when an unfunded pension liability is to be paid,it will be classified on the balance sheet as either a long-term or a current liability.

A) True
B) False

Correct Answer

verified

Show Answer

Question 43

Essay

Review LaterAdd Note

List five internal controls that relate directly to payroll.

The journal entry a company uses to record the issuance of an interest-bearing note for the purpose of borrowing funds for the business is

On June 8,Alton Co.issued an $80,000,6%,120-day note payable on an overdue account payable to Seller Co.Assume that the fiscal year of Alton Co.ends June 30.Which of the following relationships is true?

Assuming a 360-day year,when a $40,000,90-day,9% interest-bearing note payable matures,total payment will amount to:

Current liabilities are

The journal entry to record the conversion of an $4,700 accounts payable to a notes payable would be:

Amounts withheld from each employee for Social Security and Medicare varies by state.

An employee earns $40 per hour and 1.5 times that rate for all hours in excess of 40 hours per week.Assume that the employee worked 60 hours during the week,and that the gross pay prior to the current week totaled $58,000.Assume further that the social security tax rate was 7.0% (on earnings up to $100,000),the Medicare tax rate was 1.5%,and the federal income tax to be withheld was $614. Required: (1)Determine the gross pay for the week. (2)Determine the net pay for the week.

The employee earnings record would contain which column that the payroll register would probably not contain?

Florida Keys Construction installs swimming pools.They calculate that warranty obligations are 3% of gross sales.For the year just ending Florida Keys' gross sales were $1,450,000.Due to previous quarter recognitions,the Warranty Liability account has a credit balance of $28,700.Determine the year's total warranty liability and journalize any necessary value to establish the year's liability at December 31st.

An employee's take home pay is equal to gross pay less all voluntary deductions.

An unfunded pension liability is reported on the balance sheet as

The Core Company had the following assets and liabilities as of December 31,2012: Calculate: Current Ratio,Working Capital and Quick Ratio

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.

A borrower has two alternatives for a loan: (a)issue a $480,000,60-day,8% note or (2)issue a $480,000,60-day note that the creditor discounts at 8%.(Assume a 360-day year is used for interest calculations. ) Required:

On June 8,Alton Co.issued an $90,000,6%,120-day note payable to Seller Co.Assuming a 360-day year for your calculations,what is the maturity value of the note?

Payroll taxes only include social security taxes and federal unemployment and state unemployment taxes.

Which of the following would be used to compute the federal income taxes to be withheld from an employee's earnings?