Question : 51. Lisa Ramos has a regular hourly rate of $10.75. In : 1202640

 

51. Lisa Ramos has a regular hourly rate of $10.75. In a week when she worked 40 hours and had deductions of $55 for federal income tax, $26.75 for social security tax, and $6.25 for Medicare tax, her net pay was 
A. $430.
B. $342.
C. $375.
D. $397.

52. Lacy Crawford has a regular hourly rate of $21.50. In a week when she worked 40 hours and had deductions of $110 for federal income tax, $53.50 for social security tax, and $12.50 for Medicare tax, her net pay was 
A. $860.
B. $684.
C. $750.
D. $794.

53. Jason McCurdy has a regular hourly rate of $10.75. During a two week period, he worked 80 hours and had deductions of $110 for federal income tax, $53.50 for social security tax, and $12.50 for Medicare tax. His net pay was 
A. $860.
B. $684.
C. $750.
D. $794.

54. Rick O’Shea, the only employee of Hunter Furniture Company, makes $30,000 per year and is paid once a month. For the month of July, his federal income taxes withheld are $180, state income taxes withheld are $37, social security is 6.2%, Medicare tax is 1.45%, State Unemployment Tax is 4%, and Federal Unemployment tax is .8%. What is Rick’s net pay for July? 
A. $2,500.00
B. $2,283.00
C. $2,308.75
D. $2,091.75

55. The total amount earned by the employee is called the 
A. gross pay
B. take home pay
C. net pay
D. payroll

56. The Social Security Tax Payable account will normally have a(n) 
A. debit balance.
B. credit balance.
C. debit or credit balance depending on the timing of payments.
D. zero balance.

57. The employer records the amount of federal income tax withheld from employees as 
A. Income Tax Expense.
B. Employee Federal Income Tax Payable.
C. Social Security Tax Expense.
D. Social Security Tax Payable.

58. The column totals in a payroll register 
A. are used in the journal entry to record the payroll.
B. are posted directly to the general ledger accounts.
C. are unnecessary.
D. are neither recorded in a journal entry nor posted to the general ledger accounts.

59. The amount debited to Wages Expense when a payroll is recorded is the 
A. regular gross earnings.
B. earnings after taxes.
C. net earnings.
D. total gross earnings.

60. When checks are issued to employees after the entry to record the payroll has been made, the accountant would 
A. debit Salaries Expense, debit Wages Expense, and credit Cash.
B. debit Salaries and Wages Payable, debit Social Security Tax Payable, debit Medicare Tax Payable, debit Employee Income Tax Payable, and credit Cash.
C. debit Salaries and Wages Payable and credit Cash.
D. debit Salaries and Wages Payable and credit Salaries Expense and Wages Expense.

 

61. Each type of deduction made from the employees’ earnings is recorded in a separate 
A. asset account.
B. expense account.
C. liability account.
D. revenue account.

62. It is best not to pay wages and salaries by 
A. cash.
B. a check from the regular cash account.
C. the direct-deposit method.
D. a check from the payroll cash account.

63. The Payroll Tax Expense account is used to record which of the following taxes? 
A. Federal unemployment compensation tax
B. Federal Income Tax
C. State Income Taxes
D. Sales Taxes

64. The employer records the amount of federal income tax withheld as: 
A. an asset.
B. a payroll tax expense.
C. a liability.
D. an expense.

65. All details related to an employee’s earnings, deductions, and net pay throughout the year would be found in 
A. the payroll register.
B. the individual earnings record.
C. the general journal.
D. the Wages Expense account in the general ledger.

 

 

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