Question 1

On November 1, Carter Company signed a 120-day, 10% note payable, with a face value of $9,000. Carter made the appropriate year-end accrual. What is the journal entry as of March 1 to record the payment of the note assuming no reversing entry was made?

Accepted Answer

A)   Debit Notes Payable $9,000; debit Interest Payable $150; credit Cash $9,150.
B)   Debit Cash $9,300; credit Notes Payable $9,300.
C)   Debit Notes Payable $9,300; credit Interest Payable $150; credit Interest Expense $150; credit Cash $9,000.
D)   Debit Notes Payable $9,000; debit Interest Payable $150; debit Interest Expense $150; credit Cash $9,300.
E)   Debit Notes Payable $9,000; debit Interest Expense $300; credit Cash $9,300.F) A) and B)
G) A) and C)

Question 2

The annual Federal Unemployment Tax Return is:

Accepted Answer

A)   Form 940.
B)   Form 1099.
C)   Form 104.
D)   Form W-2.
E)   Form W-4.F) B) and D)
G) C) and D)

Question 3

Known liabilities are obligations set by agreements, contracts, or laws, and are measurable and definitely determinable.

Accepted Answer

A) True 
 B)False

Question 4

A _____________________ shows the pay period dates, hours worked, gross pay, deductions, and net pay of each employee for every pay period.

Accepted Answer

The answer of A _____________________ shows the pay period dates,...

Question 5

On September 15, SportsWorld borrowed $75,000 cash from FirstBank by signing a 12%, 60-day note payable.
a. Prepare SportsWorld's journal entry to record the issuance of the note payable.
b. Prepare SportsWorld's journal entry to record the payment of the note at maturity.

Accepted Answer

The answer of On September 15, SportsWorld borrowed $75,000 cash...

Question 6

What are estimated liabilities? Cite at least two examples and explain why they are classified as estimated liabilities.

Accepted Answer

Estimated liabilities are known obligati...

Question 7

A company's income before interest expense and income taxes is $302,400, and its interest expense is $72,000. Calculate the company's times interest earned ratio.

Accepted Answer

$302,400/$...

Question 8

Phil Phoenix is paid monthly. For the month of January of the current year, he earned a total of $8,288. The FICA tax for social security is 6.2% and the FICA tax rate for Medicare is 1.45%. The FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from his earnings was $1,375.17. His net pay for the month is:

Accepted Answer

A)   $5,190.83
B)   $5,844.79
C)   $6,278.79
D)   $6,566.00
E)   $6,792.64F) A) and D)
G) A) and C)

Question 9

A table that shows the amount of federal income tax to be withheld from an employee's pay is the:

Accepted Answer

A)   Form 941.
B)   Tax table.
C)   Wage bracket withholding table.
D)   W-2.
E)   W-4.F) A) and D)
G) A) and E)

Question 10

__________ allowances are items that reduce the amount of federal income taxes owed by the individual.

Accepted Answer

The answer of __________ allowances are items that reduce the...

Question 11

A bank that is authorized to accept deposits of amounts payable to the federal government is a:

Accepted Answer

A)   Credit union.
B)   FDIC insured bank.
C)   Federal depository bank.
D)   National bank.
E)   Federal Reserve Bank.F) C) and D)
G) A) and B)

Question 12

A short-term note payable is a written promise to pay a specified amount on a definite future date within one year or the operating cycle, whichever is longer.

Accepted Answer

A) True 
 B)False

Question 13

A company has 2 employees. The company's total salaries for the month of January were $8,000. The federal income tax rate for both employees is 15%. The FICA-social security tax rate is 6.2% and the FICA-Medicare tax rate is 1.45%. Calculate the amount of employee taxes withheld and prepare the company's journal entry to record the January payroll assuming these were the only deductions.

Accepted Answer

The answer of A company has 2 employees. The company's...

Question 14

On November 1, Carter Company signed a 120-day, 10% note payable, with a face value of $9,000. What is the adjusting entry for the accrued interest at December 31 on the note?

Accepted Answer

A)   Debit interest expense, $0; credit interest payable, $0.
B)   Debit interest expense, $100; credit interest payable, $100.
C)   Debit interest expense, $150; credit interest payable, $150.
D)   Debit interest expense, $200; credit interest payable, $200.
E)   Debit interest expense, $300; credit interest payable, $300.F) A) and B)
G) C) and D)

Question 15

A contingent liability:

Accepted Answer

A)   Is always of a specific amount.
B)   Is a potential obligation that depends on a future event arising from a past transaction or event.
C)   Is an obligation not requiring future payment.
D)   Is an obligation arising from the purchase of goods or services on credit.
E)   Is an obligation arising from a future event.F) A) and E)
G) A) and D)

Question 16

A company estimates that warranty expense will be 4% of sales. The company's sales for the current period are $185,000. The current period's entry to record the warranty expense is:

Accepted Answer

A)   Debit Warranty Expense $7,400; credit Sales $7,400.
B)   Debit Warranty Expense $7,400; credit Estimated Warranty Liability $7,400.
C)   Debit Estimated Warranty Liability $7,400; credit Warranty Expense $7,400.
D)   Debit Estimated Warranty Liability $7,400; credit Cash $7,400.
E)   No entry is recorded until the items are returned for warranty repairs.F) B) and C)
G) C) and E)

Question 17

A company's employer payroll tax rates are 0.8% for federal unemployment taxes, 5.4% for state unemployment taxes, 6.2% for FICA social security taxes on earnings up to $106,800, and 1.45% for FICA Medicare taxes on all earnings. Compute the W-2 Wage and Tax Statement information required below for the following employees:

Accepted Answer

The answer of A company's employer payroll tax rates are...

Question 18

The employer should record payroll deductions as:

Accepted Answer

A)   Employee receivables.
B)   Payroll taxes.
C)   Current liabilities.
D)   Wages payable.
E)   Employee payables.F) All of the above
G) A) and B)

Question 19

Identify and explain the types of employer payroll taxes.

Accepted Answer

Employers are required to make matching ...

Question 20

All of the following statements regarding long-term liabilities are except?

Accepted Answer

A)   Liabilities not expected to be paid within the longer of one year or the company's operating cycle are reported as long-term liabilities.
B)   Long-term liabilities include long-term notes payable, warranty liabilities, lease liabilities, and bonds payable.
C)   Liabilities that do not have a fixed due date, but are payable on demand, are reported as long-term liabilities.
D)   Long-term liabilities can be reported on the balance sheet in a single total or in multiple categories.
E)   A single long-term liability can be divided between current and noncurrent sections on the balance sheet.F) C) and D)
G) B) and E)

Exam 11: Current Liabilities and Payroll Accounting

The employer should record payroll deductions as:

Correct Answer
verified

On September 15, SportsWorld borrowed $75,000 cash from FirstBank by signing a 12%, 60-day note payable. a. Prepare SportsWorld's journal entry to record the issuance of the note payable. b. Prepare SportsWorld's journal entry to record the payment of the note at maturity.

Correct Answer
verified

A company estimates that warranty expense will be 4% of sales. The company's sales for the current period are $185,000. The current period's entry to record the warranty expense is:

Correct Answer
verified

A company's income before interest expense and income taxes is $302,400, and its interest expense is $72,000. Calculate the company's times interest earned ratio.

Correct Answer
verified
$302,400/$...
View Answer

Correct Answer
verified

A _____________________ shows the pay period dates, hours worked, gross pay, deductions, and net pay of each employee for every pay period.

Correct Answer
verified

What are estimated liabilities? Cite at least two examples and explain why they are classified as estimated liabilities.

Correct Answer
verified
Estimated liabilities are known obligati...
View Answer

On November 1, Carter Company signed a 120-day, 10% note payable, with a face value of $9,000. Carter made the appropriate year-end accrual. What is the journal entry as of March 1 to record the payment of the note assuming no reversing entry was made?

Correct Answer
verified

Correct Answer
verified

__________ allowances are items that reduce the amount of federal income taxes owed by the individual.

Correct Answer
verified

The annual Federal Unemployment Tax Return is:

Correct Answer
verified

A table that shows the amount of federal income tax to be withheld from an employee's pay is the:

Correct Answer
verified

On November 1, Carter Company signed a 120-day, 10% note payable, with a face value of $9,000. What is the adjusting entry for the accrued interest at December 31 on the note?

Correct Answer
verified

Correct Answer
verified

A contingent liability:

Correct Answer
verified

Known liabilities are obligations set by agreements, contracts, or laws, and are measurable and definitely determinable.

Correct Answer
verified

A short-term note payable is a written promise to pay a specified amount on a definite future date within one year or the operating cycle, whichever is longer.

Correct Answer
verified

All of the following statements regarding long-term liabilities are except?

Correct Answer
verified

Identify and explain the types of employer payroll taxes.

Correct Answer
verified
Employers are required to make matching ...
View Answer

A bank that is authorized to accept deposits of amounts payable to the federal government is a:

Correct Answer
verified

Exam 11: Current Liabilities and Payroll Accounting

The employer should record payroll deductions as:

Correct AnswerverifiedShow Answer

On September 15, SportsWorld borrowed $75,000 cash from FirstBank by signing a 12%, 60-day note payable. a. Prepare SportsWorld's journal entry to record the issuance of the note payable. b. Prepare SportsWorld's journal entry to record the payment of the note at maturity.

Correct AnswerverifiedShow Answer

A company estimates that warranty expense will be 4% of sales. The company's sales for the current period are $185,000. The current period's entry to record the warranty expense is:

Correct AnswerverifiedShow Answer

A company's income before interest expense and income taxes is $302,400, and its interest expense is $72,000. Calculate the company's times interest earned ratio.

Correct Answerverified$302,400/$...View AnswerShow Answer

Correct AnswerverifiedShow Answer

A _____________________ shows the pay period dates, hours worked, gross pay, deductions, and net pay of each employee for every pay period.

Correct AnswerverifiedShow Answer

What are estimated liabilities? Cite at least two examples and explain why they are classified as estimated liabilities.

Correct AnswerverifiedEstimated liabilities are known obligati...View AnswerShow Answer

On November 1, Carter Company signed a 120-day, 10% note payable, with a face value of $9,000. Carter made the appropriate year-end accrual. What is the journal entry as of March 1 to record the payment of the note assuming no reversing entry was made?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

__________ allowances are items that reduce the amount of federal income taxes owed by the individual.

Correct AnswerverifiedShow Answer

The annual Federal Unemployment Tax Return is:

Correct AnswerverifiedShow Answer

A table that shows the amount of federal income tax to be withheld from an employee's pay is the:

Correct AnswerverifiedShow Answer

On November 1, Carter Company signed a 120-day, 10% note payable, with a face value of $9,000. What is the adjusting entry for the accrued interest at December 31 on the note?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A contingent liability:

Correct AnswerverifiedShow Answer

Known liabilities are obligations set by agreements, contracts, or laws, and are measurable and definitely determinable.

Correct AnswerverifiedShow Answer

A short-term note payable is a written promise to pay a specified amount on a definite future date within one year or the operating cycle, whichever is longer.

Correct AnswerverifiedShow Answer

All of the following statements regarding long-term liabilities are except?

Correct AnswerverifiedShow Answer

Identify and explain the types of employer payroll taxes.

Correct AnswerverifiedEmployers are required to make matching ...View AnswerShow Answer

A bank that is authorized to accept deposits of amounts payable to the federal government is a:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
$302,400/$...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Estimated liabilities are known obligati...
View Answer

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
Employers are required to make matching ...
View Answer

Correct Answer
verified