Question 1

_________________ are probable future payments of assets or services that a company is currently obligated to make as a result of past transactions or events.

Accepted Answer

The answer of _________________ are probable future payments of assets...

Question 2

The Orlando Magic received $6 million cash in advance season ticket sales.Prior to the beginning of the basketball season,these sales are recorded as a credit to unearned season ticket revenue.

Accepted Answer

A) True 
 B)False

Question 3

Vacation benefits are a form of estimated liabilities for an employer.

Accepted Answer

A) True 
 B)False

Question 4

A company's income before interest expense and taxes is $250,000 and its interest expense is $100,000.Its times interest earned ratio is equal to .4.

Accepted Answer

A) True 
 B)False

Question 5

A company has two employees whose total January salaries totaled $8,000.The federal income tax rate for both employees is 15%.The FICA Social Security tax is 6.2% and the FICA Medicare tax is 1.45%.Calculate the amount of employee taxes withheld and prepare the company's journal entry to accrue the January salaries expense and withholding of January taxes.

Accepted Answer

None...

Question 6

Mission Company has three employees:
  Gross Pay through July  Gross Pay for August  Smith $3,200$1,000 Cain 25,8003,500 Clark 94,60013,100\begin{array}{lrr}&	ext { Gross Pay through July }&	ext { Gross Pay for August }\	ext { Smith } & \$ 3,200 & \$ 1,000 \ 	ext { Cain } & 25,800 & 3,500 \ 	ext { Clark } & 94,600 & 13,100\end{array} Smith  Cain  Clark ​ Gross Pay through July $3,20025,80094,600​ Gross Pay for August $1,0003,50013,100​

The company is subject to the following taxes: 	ext { The company is subject to the following taxes: } The company is subject to the following taxes:  
  Tax  Rate  Applied to  FICA-Social Security 6.20% First $106,800 FICA-Medicare 1.45 All grosspay  FUTA .80 First $7,000 SUTA 5.40 First $7,000\begin{array} { l c l } 	ext { Tax } & 	ext { Rate } & 	ext { Applied to } \ 	ext { FICA-Social Security } & \mathbf { 6 . 2 0 \% } & 	ext { First } \$ 106,800 \ 	ext { FICA-Medicare } & 1.45 & 	ext { All grosspay } \ 	ext { FUTA } & \mathbf { .8 0 } & 	ext { First } \$ 7,000 \ 	ext { SUTA } & 5.40 & 	ext { First } \$ 7,000 \end{array} Tax  FICA-Social Security  FICA-Medicare  FUTA  SUTA ​ Rate 6.20%1.45.805.40​ Applied to  First $106,800 All grosspay  First $7,000 First $7,000​

What are Mission Company's total August payroll taxes for Clark?

Accepted Answer

A)   $ 946.35
B)   $1,002.15
C)   $1,814.35
D)   $6,234.75
E)   $812.20 F) C) and D)
G) A) and B)

Question 7

A company's payroll for the week ended May 15 included earned salaries of $20,000.All of that week's pay is subject to FICA Social Security taxes of 6.2% and Medicare taxes of 1.45%.In addition,the company withholds the following amounts for this weekly pay period: $900 for medical insurance; $3,400 for federal income taxes; and $180 for union dues.
a.Prepare the general journal entry to accrue the payroll.
b.The company is subject to state unemployment taxes at the rate of 2% and federal unemployment taxes at the rate of 0.8%.By May 15,some employees had earned over $7,000,so only $9,000 of the $20,000 weekly gross pay was subject to unemployment tax.Prepare the general journal entry to accrue the employer's payroll tax expense.

Accepted Answer

a.
\[\begin{array} { | l | l | r | r }
...

Question 8

Match between columns
                        Premises:  Additional compensation paid to or on behalf of employees, such as premiums for medical insurance and contributions to pension plans.
 A record for a pay period that shows the pay period dates, regular and overtime hours worked, gross pay, net pay, and deductions.
 Total compensation earned by an employee.
 Income before interest expense and income taxes divided by interest expense.
 A written promise to pay a specified amount on a definite future date within one year or the company's operating cycle, whichever is longer.
 A bank authorized to accept deposits of amounts payable to the federal government, including payroll taxes.
 A seller's obligation to repair or replace a product or service that fails to perform as expected within a specified period.
 A special bank account used solely for paying employees.
 Obligations due within one year or the company's operating cycle, whichever is longer.
 Payments of income taxes that are not due until future years because of temporary differences between GAAP and tax accounting rules.

Accepted Answer

The Answer of Payroll register and Current liabilities and Payroll is...

Question 9

An employee earned $3,450 wages for the current period.Calculate the total and individual amounts to be withheld for Social Security (6.2%),Medicare (1.45%)and federal income tax (15%)assuming the entire employee's pay is subject to FICA taxes.

Accepted Answer

\[\begin{array} { | l | r | }
\hline \t...

Question 10

The employer should record payroll deductions as:

Accepted Answer

A)   Employee receivables
B)   Payroll taxes
C)   Current liabilities
D)   Wages payable
E)   Employee payablesF) A) and E)
G) C) and D)

Question 11

The amount of federal income taxes withheld from an employee's paycheck is determined by:

Accepted Answer

A)   The employee's annual earnings rate and number of withholding allowances.
B)   The employer's merit rating.
C)   The employee's annual earnings rate and merit rating.
D)   Multiplying gross pay by 6.2%.
E)   The employee's credit rating.F) A) and E)
G) All of the above

Exam 9: Current Liabilities

Correct Answer
verified
None...
View Answer

A company's income before interest expense and taxes is $250,000 and its interest expense is $100,000.Its times interest earned ratio is equal to .4.

Correct Answer
verified

Match the following definitions with the appropriate terms

The Orlando Magic received $6 million cash in advance season ticket sales.Prior to the beginning of the basketball season,these sales are recorded as a credit to unearned season ticket revenue.

Correct Answer
verified

Correct Answer
verified
a.
\[\begin{array} { | l | l | r | r }
...
View Answer

The employer should record payroll deductions as:

Correct Answer
verified

Correct Answer
verified

The amount of federal income taxes withheld from an employee's paycheck is determined by:

Correct Answer
verified

Vacation benefits are a form of estimated liabilities for an employer.

Correct Answer
verified

An employee earned $3,450 wages for the current period.Calculate the total and individual amounts to be withheld for Social Security (6.2%),Medicare (1.45%)and federal income tax (15%)assuming the entire employee's pay is subject to FICA taxes.

Correct Answer
verified
\[\begin{array} { | l | r | }
\hline \t...
View Answer

_________________ are probable future payments of assets or services that a company is currently obligated to make as a result of past transactions or events.

Correct Answer
verified

Exam 9: Current Liabilities

Correct AnswerverifiedNone...View AnswerShow Answer

A company's income before interest expense and taxes is $250,000 and its interest expense is $100,000.Its times interest earned ratio is equal to .4.

Correct AnswerverifiedShow Answer

Match the following definitions with the appropriate terms

The Orlando Magic received $6 million cash in advance season ticket sales.Prior to the beginning of the basketball season,these sales are recorded as a credit to unearned season ticket revenue.

Correct AnswerverifiedShow Answer

Correct Answerverified a. \[\begin{array} { | l | l | r | r } ...View AnswerShow Answer

The employer should record payroll deductions as:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The amount of federal income taxes withheld from an employee's paycheck is determined by:

Correct AnswerverifiedShow Answer

Vacation benefits are a form of estimated liabilities for an employer.

Correct AnswerverifiedShow Answer

An employee earned $3,450 wages for the current period.Calculate the total and individual amounts to be withheld for Social Security (6.2%),Medicare (1.45%)and federal income tax (15%)assuming the entire employee's pay is subject to FICA taxes.

Correct Answerverified\[\begin{array} { | l | r | } \hline \t...View AnswerShow Answer

_________________ are probable future payments of assets or services that a company is currently obligated to make as a result of past transactions or events.

Correct AnswerverifiedShow Answer

Correct Answer
verified
None...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a.
\[\begin{array} { | l | l | r | r }
...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
\[\begin{array} { | l | r | }
\hline \t...
View Answer

Correct Answer
verified