Question : 111. Use the following information to answer the Questions 61 & : 1246522

 

 

111. Use the following information to answer the Questions 61 & 62.The following totals for the month of April were taken from the payroll register of Magnum Company.

Salaries

$12,000

FICA taxes withheld

550

Income taxes withheld

2,500

Medical insurance deductions

450

Federal Unemployment Taxes

32

State Unemployment Taxes

216

 

 

The journal entry to record the monthly payroll on April 30 would include a  A. credit to Salaries Payable for $8,500.B. debit to Salaries Expense for $8,500.C. debit to Salaries Payable for $8,500.D. debit to Salaries Payable for $8,252.

 

112. Use the following information to answer the Questions 61 & 62.The following totals for the month of April were taken from the payroll register of Magnum Company.

Salaries

$12,000

FICA taxes withheld

550

Income taxes withheld

2,500

Medical insurance deductions

450

Federal Unemployment Taxes

32

State Unemployment Taxes

216

 

 

The entry to record accrual of employer’s payroll taxes would include a A. debit to Payroll Tax Expense for $248.B. credit to FICA Taxes Payable for $1,100.C. credit to Payroll Tax Expense for $248.D. debit to Payroll Tax Expense for $798.

 

113. The following totals for the month of April were taken from the payroll register of Magnum Company.

Salaries

$10,000

FICA taxes withheld

850

Income taxes withheld

2,000

Medical insurance deductions

450

Unemployment Taxes

420

 

 

The entry to record accrual of employer’s payroll taxes would include a A. debit to Payroll Tax Expense for $1,270.B. credit to FICA Taxes Payable for $1,700.C. credit to Payroll Tax Expense for $420.D. debit to Payroll Tax Expense for $2,120.

 

114. An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $110; cumulative earnings for the year prior to this week, $24,500; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, .8% on the first $7,000. What is the net amount to be paid the employee? A. $569.87B. $539.00C. $625.00D. $544.88

 

115. An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $120; cumulative earnings for the year prior to this week, $5,500; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, .8% on the first $7,000. What is the employer’s payroll tax expense? A. $55.13B. $61.01C. $86.00D. $141.13

 

116. The following totals for the month of June were taken from the payroll register of Young Company:

Salaries expense

$15,000

Social security and Medicare Taxes withheld

1,125

Income Taxes withheld

3,000

Retirement Savings

500

 

Salaries subject to federal and state

 

unemployment taxes of 6.2 percent

4,000

 

 

 

 

The entry to record the accrual of employer’s payroll taxes would include a A. debit to Payroll Taxes Expense for $2,498B. credit to Social Security and Medicare Tax Payable for $2,250C. debit to Payroll Taxes Expense for $1,373D. Debit to Payroll Tax Expense for $1,125

 

117. Use the following information to answer the following questions.Jensen Company has the following information for the pay period of January 15 – 31, 20xx. 

Gross payroll

$10,000

 

Federal income tax withheld

$1,500

Social security rate

6%

 

Federal unemployment tax rate

.8%

Medicare rate

1.5%

 

State unemployment tax rate

5.4%

 

 

 

 

 

Salaries Payable would be recorded in the amount of: A. $8,500B. $7,130C. $7,670D. $7,750

 

118. Use the following information to answer the following questions.Jensen Company has the following information for the pay period of January 15 – 31, 20xx. 

Gross payroll

$10,000

 

Federal income tax withheld

$1,500

Social security rate

6%

 

Federal unemployment tax rate

.8%

Medicare rate

1.5%

 

State unemployment tax rate

5.4%

 

 

 

 

 

Assuming that all wages are subject to federal and state unemployment taxes, the Payroll Taxes Expense would be recorded as: A. $1,370B. $750C. $620D. $2,870

 

119. Assume that social security taxes are payable at a 6% rate on the first $100,000 of earnings and medicare taxes are payable at a 1.5% rate with no maximum earnings, and that federal and state unemployment compensation taxes total 4.6% on the first $7,000 of earnings.  If an employee, George Jones, earns $2,500 for the current week and Jones’ year-to-date earnings before this week were $6,800, what is the total payroll taxes related to the current week? A. $187.50B. $196.70C. $344.50D. none of the above

 

120. Which of the following is an example of a variable component of a payroll system? A. hours workedB. Medicare tax rateC. rate of payD. Social security tax rate