Question 1

The garnishment that takes priority over all others is :​
A) ​a federal tax levy
B) ​a government student loan
C) ​a creditor garnishment
D) ​an administrative wage garnishment
E) ​a child support order

Accepted Answer

A child support order takes priority over all other garnishments. This means that if an employee has multiple garnishments, the employer must first satisfy the amount of the child support before any other garnishment can be fulfilled.

Question 2

In recording the monthly adjusting entry for accrued wages at the end of the accounting period,the amount of the adjustment would usually be determined by:
A) collecting the timesheets for the days accrued.
B) using the same amount as the prior month's adjustment.
C) using the wages of the salaried workers only.
D) a percentage of the previous week's gross payroll.
E) a percentage of the previous week's net payroll.

Accepted Answer

The answer of In recording the monthly adjusting entry for...

Question 3

Exhibit 6-1
The totals from the first payroll of the year are shown below.
 
-Refer to Exhibit 6-1.Journalize the entry to deposit the FICA and FIT taxes.

Accepted Answer

The answer of Exhibit 6-1
The totals from the first payroll...

Question 4

Which of the following accounts is an expense account in which an employer records the FICA,FUTA,and SUTA taxes?
A) Wages Expense
B) Payroll Taxes
C) SUTA Taxes Payable
D) Salaries Payable
E) None of the above

Accepted Answer

Payroll Taxes is the account used to record FICA (Social Security and Medicare), FUTA (Federal Unemployment Tax Act), and SUTA (State Unemployment Tax Act) taxes. Wages Expense is used to record the actual gross wages paid to employees, and Salaries Payable is a liability account for any salaries owed to employees but not yet paid. SUTA Taxes Payable is a liability account specifically for state unemployment taxes that have not yet been paid.

Question 5

Which of the following is not an expense of the employer?
A) FUTA tax
B) FICA tax-HI
C) FICA tax-OASDI
D) SUTA tax
E) Union dues withheld

Accepted Answer

Union dues withheld are not an expense of the employer, but rather a deduction from the employee's wages. The other options (FUTA tax, FICA tax-HI, FICA tax-OASDI, and SUTA tax) are all payroll taxes that employers are required to pay.

Question 6

Which of these accounts shows the total gross earnings that the employer incurs as an expense each payday?
A) Payroll Taxes
B) Federal Income Taxes Payable
C) Wages Expense
D) Salaries Payable
E) None of the above

Accepted Answer

Wages Expense shows the total gross earnings that the employer incurs as an expense each payday. Payroll Taxes and Federal Income Taxes Payable are deductions from employees' gross pay, and Salaries Payable refers to amounts owed to employees but not yet paid out.

Question 7

Exhibit 6-1
The totals from the first payroll of the year are shown below.
 
-Refer to Exhibit 6-1.Journalize the entry to record the payroll.

Accepted Answer

The answer of Exhibit 6-1
The totals from the first payroll...

Question 8

Which of the following items would require an adjusting entry at the end of each accounting period?
A) Garnishment for child support payments
B) Withholdings for a 401(k)plan
C) Vacation pay earned by employees
D) Union dues withheld
E) None of the above

Accepted Answer

Vacation pay earned by employees is an example of an accrued expense, which requires an adjusting entry at the end of each accounting period to properly reflect the liability. The other options listed are examples of payroll withholdings, which are recorded when the payroll is processed and do not require adjusting entries at the end of the accounting period.

Question 9

When recording the deposit of FUTA taxes owed,the proper entry is:
A) FUTA Tax Expense
Cash
B) Payroll Taxes
Cash
C) Payroll Taxes
FUTA Taxes Payable
D) FUTA Taxes Payable
Cash
E) FUTA Tax Expense
FUTA Taxes Payable

Accepted Answer

When recording the deposit of FUTA taxes owed, the amount paid is credited to cash and debited to FUTA taxes payable. This is because FUTA taxes are a payroll tax liability that must be reported and remitted to the IRS. The FUTA Tax Expense account would be used to record the expense incurred during the payroll period, not the deposit of the taxes owed. Option A is incorrect because it only records the expense, not the deposit. Option B is incorrect because it is too broad and does not specify which type of payroll tax is being paid. Option C is incorrect because it debit the Payroll Taxes account, which should only be used for other payroll taxes such as FICA or Medicare. Option E is incorrect because it debits the Expense account, which is not the right account to use to record the liability.

Question 10

Carmen Gaetano worked 46 hours during this payweek.He is paid time-and-a-half for hours over 40 and his pay rate is $17.90/hour.What was his overtime premium pay for this workweek?
A) $107.40
B) $161.10
C) $50.70
D) $53.70
E) $26.85

Accepted Answer

First, we need to calculate the regular pay for the first 40 hours:
Regular pay = 40 hours x $17.90/hour = $716.00
Then, we need to calculate the overtime premium pay for the extra 6 hours:
Overtime premium pay = 6 hours x $17.90/hour x 0.5 = $53.70
Therefore, the answer is D) $53.70.

Question 11

Exhibit 6-1
The totals from the first payroll of the year are shown below.
 
-Refer to Exhibit 6-1.Journalize the adjustment for accrued wages for the following Monday,which is the end of the accounting period.The gross payroll for that day is $7,475.​

Accepted Answer

The answer of Exhibit 6-1
The totals from the first payroll...

Question 12

The employee's earnings record provides information for each of the following except:
A) completing Forms W-2.
B) completing the journal entry to record the payroll.
C) determining when the accumulated wages of an employee reach cutoff levels.
D) preparing reports required by state unemployment compensation laws.
E) preparing the payroll register.

Accepted Answer

The employee's earnings record provides information for completing Forms W-2, determining when the accumulated wages of an employee reach cutoff levels, preparing reports required by state unemployment compensation laws, and preparing the payroll register. However, it does not provide information for completing the journal entry to record the payroll. That information would come from other sources such as time sheets and employee wage rates.

Question 13

The entry made at the end of the accounting period to record wages incurred but unpaid is:
A) Wages Expense
Wages Payable
B) Wages Expense
FICA Taxes Payable-OASDI
FICA Taxes Payable-HI
FIT Payable
Wages Payable
C) Wages Payable
Cash
D) Wages Expense
Cash
E) Wages Expense
Payroll Taxes
Wages Payroll

Accepted Answer

The entry to record wages incurred but unpaid is usually a simple one, consisting of debiting Wages Expense and crediting Wages Payable. This reflects the fact that the company has incurred an expense (Wages Expense) but has not yet paid for it (Wages Payable). Therefore, choice A is the best option. The other choices either include unnecessary accounts or do not accurately reflect the transaction.

Question 14

Exhibit 6-1
The totals from the first payroll of the year are shown below.
 
-Refer to Exhibit 6-1.Journalize the entry to record the employer's payroll taxes (assume a SUTA rate of 3.7%).

Accepted Answer

The answer of Exhibit 6-1
The totals from the first payroll...

Quiz 6: Analyzing and Journalizing Payroll

The garnishment that takes priority over all others is :​

In recording the monthly adjusting entry for accrued wages at the end of the accounting period,the amount of the adjustment would usually be determined by:

Exhibit 6-1 The totals from the first payroll of the year are shown below. -Refer to Exhibit 6-1.Journalize the entry to deposit the FICA and FIT taxes.

Which of the following accounts is an expense account in which an employer records the FICA,FUTA,and SUTA taxes?

Which of the following is not an expense of the employer?

Which of these accounts shows the total gross earnings that the employer incurs as an expense each payday?

Exhibit 6-1 The totals from the first payroll of the year are shown below. -Refer to Exhibit 6-1.Journalize the entry to record the payroll.

Which of the following items would require an adjusting entry at the end of each accounting period?

When recording the deposit of FUTA taxes owed,the proper entry is:

Carmen Gaetano worked 46 hours during this payweek.He is paid time-and-a-half for hours over 40 and his pay rate is $17.90/hour.What was his overtime premium pay for this workweek?

Exhibit 6-1 The totals from the first payroll of the year are shown below. -Refer to Exhibit 6-1.Journalize the adjustment for accrued wages for the following Monday,which is the end of the accounting period.The gross payroll for that day is $7,475.​

The employee's earnings record provides information for each of the following except:

The entry made at the end of the accounting period to record wages incurred but unpaid is:

Exhibit 6-1 The totals from the first payroll of the year are shown below. -Refer to Exhibit 6-1.Journalize the entry to record the employer's payroll taxes (assume a SUTA rate of 3.7%).

The garnishment that takes priority over all others is :

Exhibit 6-1 The totals from the first payroll of the year are shown below. -Refer to Exhibit 6-1.Journalize the adjustment for accrued wages for the following Monday,which is the end of the accounting period.The gross payroll for that day is $7,475.