Question :
116.Springfield Company offers a bonus plan to its employees and : 1236362
116.Springfield Company offers a bonus plan to its employees and the amount of the employee bonuses for the current year is estimated to be $32,500 to be paid during January of the following year. The journal entry on December 31 to record the bonuses is:
A.Debit Estimated Bonus Payable $32,500; credit Cash $32,500.
B.Debit Employee Bonus Expense $32,500; credit Bonus Payable $32,500.
C.No entry since the bonuses are not paid until January.
D.Debit Employee Bonus Expense $32,500; credit Prepaid Employee Bonus $32,500.
E.Debit Unearned Bonuses $32,500; credit Bonus Payable $32,500.
117.A payroll register does not include:
A.Pay period dates.
B.Hours worked.
C.Gross pay and net pay.
D.Deductions.
E.Employer tax expenses.
118.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.Compute unemployment taxes.
119.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.
120.Companies may use a special bank account solely for the purpose of paying employees, by depositing an amount equal to the total employees’ net pay into the account each pay period and drawing the employees’ payroll checks on the account. This 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.
121.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.
122.Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell 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.
123.Furniture World is required by law to collect and remit sales taxes to the state. If Furniture World has $78,000 of cash sales that are subject to a 6% sales tax, what is the journal entry to record the cash sales?
A.Debit Cash $82,680; credit Sales $78,000; credit Sales Taxes Payable $4,680.
B.Debit Sales Taxes Payable $4,680; debit Cash $73,220; credit Sales $78,000.
C.Debit Cash $78,000; credit Sales $78,000; and record the taxes when paid.
D.Debit Cash $78,000; credit Sales $73,320; credit Sales Taxes Payable $4,680.
E.Debit Accounts Receivable $82,680; credit Sales $78,000; credit Sales Taxes Payable $4,680.
124.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.
125.On April 12, Hong Company agrees to accept a 60-day, 10%, $4,500 note from Indigo Company to extend the due date on an overdue account. What is the journal entry needed to record the transaction by Indigo 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.
