Question 1

ABC Grocers uses a separate checking account to pay their employees. The gross pay for the period was $850. However, after deductions were taken out, the net pay for the period was $790. The journal entry to record the issuance of payroll checks to their employees would include:

Accepted Answer

A)  a credit to Salaries Payable for $850
B)  a debit to Salaries Payable for $790
C)  a debit to Salaries Payable for $850
D)  a debit to Salaries Expense for $790E) A) and B)
F) A) and C)

Question 2

An employee whose regular hourly rate is $12 and whose overtime rate is 1.5 times the regular rate worked 48 hours in one week. The total overtime earned by the employee for the week is

Accepted Answer

A)  $96.
B)  $144.
C)  $480.
D)  $48.E) A) and B)
F) B) and D)

Question 3

If an employee works for more than one employer during the year, the social security tax is deducted and matched by only one employer.

Accepted Answer

A) True 
 B)False

Question 4

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 tax is 6.2%, Medicare tax is 1.45%, State Unemployment Tax is 4%, and Federal Unemployment tax is 0.6%. What is Rick's net pay for July?

Accepted Answer

A)  $2,500.00
B)  $2,091.75
C)  $2,308.75
D)  $2,283.00E) None of the above
F) A) and B)

Question 5

Sabrina Duncan had gross earnings for the pay period ending 10/15/19 of $5,785. Her total gross earnings as of 9/30/19 were $116,400. If Social Security taxes are 6.2% on a maximum earnings of
$122,700 per year, Sabrina's Social Security withheld from her 10/15/19 paycheck would be:

Accepted Answer

A)  $220.47
B)  $216.07
C)  $358.67
D)  $390.60E) C) and D)
F) B) and D)

Question 6

Match between columns
                        Premises:  A tax imposed by the Federal Insurance Contributions Act and collected on employee earnings to provide retirement and disability benefits
 A method of paying employees according to a percentage of net sales
 A method of paying employees according to an agreed-upon amount for each week or month
 An employee record that contains information needed to compute earnings and complete tax reports
 A federal act providing certain benefits for employees and their families; officially the Federal Insurance Contributions Act
 Earnings in excess of the base amount set by the Social Security Act
 A method of paying employees according to a stated rate per hour
 Salaried employees who hold supervisory or managerial positions who are not subject to the maximum hour and overtime pay provisions of the Wage and Hour Law
 Another name for individual earnings record
 Insurance that protects employees against losses from job-related injuries or illnesses, or compensates their families if death occurs in the course of the employment
 Rate of pay for an employee's work in excess of 40 hours a week
 A person who is hired by and works under the control and direction of the employer
 A tax levied on employees and employers to provide medical care for the employee and the employee's spouse after each has reached age 65
 A record of payroll information for each employee for the pay period
 A form used to claim exemption (withholding) allowances
 One who is paid by a company to carry out a specific task or job but is not under the direct supervision or control of the company
 Taxes levied by a state government against employers to benefit unemployed workers
 A method of paying employees according to the number of units produced
 Taxes levied by the federal government against employers to benefit unemployed workers
 A simple method to determine the amount of federal income tax to be withheld using a table provided by the government

Accepted Answer

The Answer of Commission basis and Compensation record and Employee is...

Question 7

If an employee whose regular hourly rate is $9 and whose overtime rate is 1.5 times the regular rate works 42 hours in one week, the employee's gross pay is $567.

Accepted Answer

A) True 
 B)False

Question 8

Employees of firms engaged in interstate commerce must receive an overtime rate of at least 1.5 times the regular hourly rate of pay for time worked in excess of ________ hours per week.

Accepted Answer

The answer of Employees of firms engaged in interstate commerce...

Question 9

An employee whose regular hourly rate is $10 and whose overtime rate is 1.5 times the regular rate worked 44 hours in one week. In the payroll register, the employer should record wages expense of

Accepted Answer

A)  $460.
B)  $340.
C)  $400.
D)  $60.E) C) and D)
F) A) and C)

Question 10

During one week, three employees of the Siesta Inn worked the number of hours shown below. All these employees receive overtime pay at one and a half times their regular hourly rate for any hours worked beyond 40 in a week. Compute the regular earnings, overtime earnings, and gross pay for each employee.
 $\begin{array}{|c|r|l|l|l|l|}
\hline \begin{array}{l}
\text { Employee } \
\text { No. }
\end{array} & \begin{array}{l}
\text { Regular } \
\text { Hourly Rate }
\end{array} & \begin{array}{l}
\text { Hours } \
\text { Worked }
\end{array} & \begin{array}{l}
\text { Regular } \
\text { Earnings }
\end{array} & \begin{array}{l}
\text { Overtime } \
\text { Earnings }
\end{array} & \text { Gross Pay } \
\hline 1 & \$ 14.00 & 46 & & & \
\hline 2 & 12.00 & 44 & & & \
\hline 3 & 10.00 & 45 & & & \
\hline
\end{array}$

Accepted Answer

Employee No. 1:Reg. Earn., $560.00; OT E...

Question 11

The amount debited to Wages Expense when a payroll is recorded is the

Accepted Answer

A)  total gross earnings.
B)  regular gross earnings.
C)  earnings after taxes.
D)  net earnings.E) A) and B)
F) B) and D)

Question 12

Lila Harrison's is the sole employee of ABC Grocers. Her gross pay for the week was $400. She had deductions of $50 for federal income tax, $24.80 for social security tax, and $5.80 for Medicare tax. The journal entry to record her gross pay would include:

Accepted Answer

A)  a credit to Salaries Payable for $400.00
B)  a debit to Salaries Payable for $319.40
C)  a debit to Salaries Expense for $319.40
D)  a debit to Salaries Expense for $400.00E) B) and D)
F) A) and B)

Question 13

Publication 15, Circular E contains federal income tax withholding tables.

Accepted Answer

A) True 
 B)False

Question 14

Abe Carter had gross earnings of $6,000 for the pay period ending 11/30. His total gross earnings as of 11/15 were $116,000. If Social Security taxes are 6.2% on a maximum earnings of $122,700 per year and Medicare tax is 1.45% on all earnings, the journal entry to record his earnings for the period ending 11/30 would include:

Accepted Answer

A)  a credit to FICA Tax Payable for $87.00
B)  a credit to Salaries Expense for $6,000
C)  a credit to Medicare Tax Payable for $36.25
D)  a credit to Medicare Tax Payable for $87.00E) B) and D)
F) C) and D)

Question 15

The Royal Company has office employees and sales employees. A summary of their earnings and deductions for the week ended April 26, 2019, is shown below. On page 18 of a general journal, record the April 26 payroll and the entry to summarize the effect of the checks written to pay the payroll.

Accepted Answer

The answer of The Royal Company has office employees and...

Question 16

The Burns Company has two office employees and two shipping employees. A summary of their earnings and deductions for the week ended August 23, 2019, is shown below. On page 10 of a general journal, record the August 23 payroll and the entry to summarize the effect of the checks written to pay the payroll.

Accepted Answer

The answer of The Burns Company has two office employees...

Question 17

It is best not to pay wages and salaries by

Accepted Answer

A)  a check from the regular cash account.
B)  the direct-deposit method.
C)  cash.
D)  a check from the payroll cash account.E) C) and D)
F) B) and C)

Question 18

The monthly salaries for December and the year-to-date earnings as of November 30 for the three employees of the Barbara's Bookstore, Inc. are listed below. Compute the amount of social security tax and Medicare tax to be withheld from each of the employee's gross pay for December. Assume a 6.2 percent social security tax rate on a maximum of $122,700 for the calendar year. Assume a
1.45 percent Medicare tax rate.

Accepted Answer

Employee No. 1:Soc. Sec. Tax, ...

Question 19

Salespeople who are paid a percentage of net sales are paid on a(n)

Accepted Answer

A)  salary basis.
B)  hourly-rate basis.
C)  commission basis
D)  piece-rate basis.E) C) and D)
F) B) and C)

Question 20

Which of the following is a factor in the determination of the amount of social security tax to withhold from an employee's pay?

Accepted Answer

A)  gross wages
B)  marital status
C)  withholding allowances claimed on Form W-4
D)  hours worked during the pay periodE) A) and D)
F) All of the above

Exam 10: Payroll Computations, Records, and Payment

Correct Answer
verified

Match the description with the accounting terms.

An employee whose regular hourly rate is $12 and whose overtime rate is 1.5 times the regular rate worked 48 hours in one week. The total overtime earned by the employee for the week is

Correct Answer
verified

An employee whose regular hourly rate is $10 and whose overtime rate is 1.5 times the regular rate worked 44 hours in one week. In the payroll register, the employer should record wages expense of

Correct Answer
verified

If an employee works for more than one employer during the year, the social security tax is deducted and matched by only one employer.

Correct Answer
verified

Correct Answer
verified
Employee No. 1:Reg. Earn., $560.00; OT E...
View Answer

Publication 15, Circular E contains federal income tax withholding tables.

Correct Answer
verified

Correct Answer
verified

Salespeople who are paid a percentage of net sales are paid on a(n)

Correct Answer
verified

It is best not to pay wages and salaries by

Correct Answer
verified

ABC Grocers uses a separate checking account to pay their employees. The gross pay for the period was $850. However, after deductions were taken out, the net pay for the period was $790. The journal entry to record the issuance of payroll checks to their employees would include:

Correct Answer
verified

Which of the following is a factor in the determination of the amount of social security tax to withhold from an employee's pay?

Correct Answer
verified

Correct Answer
verified

The amount debited to Wages Expense when a payroll is recorded is the

Correct Answer
verified

The Royal Company has office employees and sales employees. A summary of their earnings and deductions for the week ended April 26, 2019, is shown below. On page 18 of a general journal, record the April 26 payroll and the entry to summarize the effect of the checks written to pay the payroll.

Correct Answer
verified

Correct Answer
verified
Employee No. 1:Soc. Sec. Tax, ...
View Answer

If an employee whose regular hourly rate is $9 and whose overtime rate is 1.5 times the regular rate works 42 hours in one week, the employee's gross pay is $567.

Correct Answer
verified

Employees of firms engaged in interstate commerce must receive an overtime rate of at least 1.5 times the regular hourly rate of pay for time worked in excess of ________ hours per week.

Correct Answer
verified

Lila Harrison's is the sole employee of ABC Grocers. Her gross pay for the week was $400. She had deductions of $50 for federal income tax, $24.80 for social security tax, and $5.80 for Medicare tax. The journal entry to record her gross pay would include:

Correct Answer
verified

Sabrina Duncan had gross earnings for the pay period ending 10/15/19 of $5,785. Her total gross earnings as of 9/30/19 were $116,400. If Social Security taxes are 6.2% on a maximum earnings of $122,700 per year, Sabrina's Social Security withheld from her 10/15/19 paycheck would be:

Correct Answer
verified

Exam 10: Payroll Computations, Records, and Payment

Correct AnswerverifiedShow Answer

Match the description with the accounting terms.

An employee whose regular hourly rate is $12 and whose overtime rate is 1.5 times the regular rate worked 48 hours in one week. The total overtime earned by the employee for the week is

Correct AnswerverifiedShow Answer

An employee whose regular hourly rate is $10 and whose overtime rate is 1.5 times the regular rate worked 44 hours in one week. In the payroll register, the employer should record wages expense of

Correct AnswerverifiedShow Answer

If an employee works for more than one employer during the year, the social security tax is deducted and matched by only one employer.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedEmployee No. 1:Reg. Earn., $560.00; OT E...View AnswerShow Answer

Publication 15, Circular E contains federal income tax withholding tables.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Salespeople who are paid a percentage of net sales are paid on a(n)

Correct AnswerverifiedShow Answer

It is best not to pay wages and salaries by

Correct AnswerverifiedShow Answer

ABC Grocers uses a separate checking account to pay their employees. The gross pay for the period was $850. However, after deductions were taken out, the net pay for the period was $790. The journal entry to record the issuance of payroll checks to their employees would include:

Correct AnswerverifiedShow Answer

Which of the following is a factor in the determination of the amount of social security tax to withhold from an employee's pay?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The amount debited to Wages Expense when a payroll is recorded is the

Correct AnswerverifiedShow Answer

The Royal Company has office employees and sales employees. A summary of their earnings and deductions for the week ended April 26, 2019, is shown below. On page 18 of a general journal, record the April 26 payroll and the entry to summarize the effect of the checks written to pay the payroll.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedEmployee No. 1:Soc. Sec. Tax, ...View AnswerShow Answer

If an employee whose regular hourly rate is $9 and whose overtime rate is 1.5 times the regular rate works 42 hours in one week, the employee's gross pay is $567.

Correct AnswerverifiedShow Answer

Employees of firms engaged in interstate commerce must receive an overtime rate of at least 1.5 times the regular hourly rate of pay for time worked in excess of ________ hours per week.

Correct AnswerverifiedShow Answer

Lila Harrison's is the sole employee of ABC Grocers. Her gross pay for the week was $400. She had deductions of $50 for federal income tax, $24.80 for social security tax, and $5.80 for Medicare tax. The journal entry to record her gross pay would include:

Correct AnswerverifiedShow Answer

Sabrina Duncan had gross earnings for the pay period ending 10/15/19 of $5,785. Her total gross earnings as of 9/30/19 were $116,400. If Social Security taxes are 6.2% on a maximum earnings of $122,700 per year, Sabrina's Social Security withheld from her 10/15/19 paycheck would be:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Employee No. 1:Reg. Earn., $560.00; OT E...
View Answer

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Employee No. 1:Soc. Sec. Tax, ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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