Question : 11) The entry to record the payroll tax expense would : 1171354

 

11) The entry to record the payroll tax expense would include:

A) a credit to Federal Income Taxes Payable.

B) a credit to Cash.

C) a credit to FICA (OASDI and Medicare) Taxes Payable.

D) a credit to Wages Payable.

12) The employer’s total FICA, SUTA, and FUTA tax is recorded as:

A) a debit to Payroll Tax Expense.

B) a credit to Payroll Tax Expense.

C) a credit to Accounts Payable.

D) a debit to Payroll Tax Payable.

13) Which of the following statements is false?

A) Payroll Tax Expense is an expense account.

B) FICA-OASDI Payable increases on the credit side of the account.

C) Payroll Tax Expense increases on the debit side of the account.

D) FUTA Tax Payable increases on the debit side of the account.

14) Why would a company use a separate payroll cash account?

A) Provides for better internal control

B) Ease of account reconciliation

C) Determine whether or not the employee has cashed their check

D) All of the above are correct.

15) Which of the following statements is true?

A) Payroll Tax Expense increases on the debit side of the account.

B) FICA-OASDI Payable is a liability.

C) Payroll Tax Expense has a debit normal balance.

D) All of these answers are correct.

16) Gail’s Bakery had the following information before the pay period ending June 30:

 

Employee Name

Pay

rate

Hours worked

Cumulative earnings

Department

Federal income tax withheld

P. Gardner

$2,000

Salaried

$12,000

Kitchen

$86.00

T. Bennitt

10.00/hr

50

6,500

Office

22.00

 

Assume:

FICA-OASDI applied to the first $117,000 at a rate of 6.2%.

FICA-Medicare applied at a rate of 1.45%.

FUTA applied to the first $7,000 at a rate of 0.8%.

SUTA applied to the first $7,000 at a rate of 5.6%.

State income tax is 3.8%.

 

Given the above information, what would be the amount applied to Office employee wage Expense?

A) Debit $550

B) Credit $550

C) Debit $500

D) Credit $500

17) Grammy’s Bakery had the following information before the pay period ending June 30:

 

Employee Name

Pay

rate

Hours worked

Cumulative earnings

Department

Federal income tax withheld

P. Ganster

$3,000

Salaried

$12,000

Kitchen

$86.00

T. Baker

10.00/hr

50

6,500

Office

22.00

 

Assume:

FICA-OASDI applied to the first $117,000 at a rate of 6.2%.

FICA-Medicare applied at a rate of 1.45%.

FUTA applied to the first $7,000 at a rate of 0.8%.

SUTA applied to the first $7,000 at a rate of 5.6%.

State income tax is 3.8%.

 

Given the above information, what would be the amount applied to Kitchen Salaries Expense?

A) Debit $12,000

B) Credit $12,000

C) Debit $3,000

D) Credit $3,000

18) When a business starts, what must it obtain that identifies itself to the government?

A) State Employment Number

B) Federal Unemployment Number

C) Employer Identification Number

D) A look-back period

19) The look-back period is used to determine whether:

A) a business should make its Form 941 tax deposits on a monthly or semiweekly basis.

B) an employer will use Form 940.

C) an employer has sent the W-2s to their employees on timely basis.

D) an employer must pay unemployment taxes.

20) Form SS-4 is:

A) completed to obtain an EIN.

B) submitted to summarize the W-2 forms to the Social Security Administration.

C) submitted quarterly to pay FIT and FICA taxes.

D) submitted annually to pay unemployment taxes.