Question :
111. The wage bracket withholding table used to:
A. Compute social security withholding.
B. Compute : 1225197
111. The wage bracket withholding table is used to:
A. Compute social security withholding.
B. Compute Medicare withholding.
C. Compute federal income tax withholding.
D. Prepare the W-4.
E. All of these.
112. A table that shows the amount of federal income tax to be withheld from an employee’s pay is the:
A. Form 941.
B. Tax table.
C. Wage bracket withholding table.
D. W-2.
E. W-4.
113. A special bank account used solely for the purpose of paying employees, by depositing in the account each pay period an amount equal to the total employees’ net pay and drawing the employees’ payroll checks on the account, is a(n):
A. Federal depository bank account.
B. Employee’s Individual Earnings account.
C. Employees’ bank account.
D. Payroll register account.
E. Payroll bank account.
114. If a company uses a special payroll bank account:
A. The company does not need to issue paychecks.
B. The company draws one check for the entire payroll on the regular bank account and deposits it in the payroll bank account.
C. The company must use a federal depository bank for the payroll bank account.
D. There is no need for a payroll register.
E. There is no need to issue W-2’s.
115. Harvel Company is required by law to collect and remit sales taxes to the state. If Havel has $8,000 of cash sales that are subject to an 8% sales tax, what is the journal entry to record the cash sales?
A. Debit Cash $8,000; credit Sales $7,360; credit Sales Taxes Payable $640.
B. Debit Sales Taxes Payable $640; debit Cash $7,360; credit Sales $8,000.
C. Debit Cash $8,000; credit Sales $8,000; and record the taxes when paid.
D. Debit Cash $8,640; credit Sales $8,000; credit Sales Taxes Payable $640.
E. Debit Accounts Receivable $8,640; credit Sales $8,000; credit Sales Taxes Payable $640.
116. All of the following statements regarding long-term liabilities are True except?
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.
117. On March 17, Grady Company agrees to accept a 60-day, 10%, $4,500 note from Alert Company to extend the due date on an overdue account. What is the journal entry needed to record the transaction by Alert Company?
A. Debit Notes Payable $4,500; credit Accounts Payable $4,500.
B. Debit Accounts Payable $4,500; credit Notes Payable $4,500.
C. Debit Accounts Receivable $4,500; credit Notes Payable $4,500.
D. Debit Cash $4,500; credit Notes Payable $4,500.
E. Debit Sales $4,500; credit Notes Payable $4,500.
118. On March 17, Grady Company agrees to accept a 60-day, 10%, $4,500 note from Alert Company to extend the due date on an overdue account. What is the journal entry needed to record the payment of the note by Alert Company on the maturity date?
A. Debit Notes Payable $4,500; debit Interest Expense $75; credit Cash $4,575.
B. Debit Notes Payable $4,500; credit Interest Expense $75, credit Cash $4,425.
C. Debit Cash $4,575; credit Interest Revenue $75; credit Notes Payable $4,500.
D. Debit Notes Payable $4,500; debit Interest Expense $112; credit Cash $4,612.
E. Debit Cash $4,575; credit Interest Revenue $75; credit Notes Receivable $4,500.
119. An employee earns $5,500 per month working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.8%, and the SUTA tax rate is 4.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s pay. The employee has $182 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $150 and contributes $75 to a retirement plan each month. What is the amount of net pay for the employee for the month of January?
A. $4,827.00
B. $4,672.25
C. $4,628.25
D. $4,386.25
E. $4,430.25
120. An employee earns $5,500 per month working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.8%, and the SUTA tax rate is 4.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s pay. The employee has $182 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $150 and contributes $75 to a retirement plan each month. What is the amount the employer should record as payroll taxes expense for the employee for the month of January?
A. $420.75
B. $464.75
C. $662.75
D. $888.75
E. $706.75
