Question 1

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 represent taxes that the employer withholds from the employee's gross pay and remits to the relevant government agencies. Salaries Payable represents the amount that the employer owes to employees for work performed but not yet paid.

Question 2

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 3

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 where an employer records the FICA, FUTA, and SUTA taxes. This account is considered an expense account as it is a cost of doing business for the employer.

Question 4

Exhibit 6-1
The totals from the first payroll of the year are shown below.
​ $$\begin{array} { c c c c c c c } 
\text { Total } & \text { FICA } & \text { FICA } & \text { FIT } & \text { State } & \text { Union } & \text { Net } \
\text { Earnings } & \text { OASDI } & \text { HI } & \text { W/H } & \text { Tax } & \text { Dues } & \text { Pay } \
\$ 36,195.10 & \$ 2,244.10 & \$ 524.83 & \$ 6,515.00 & \$ 361.95 & \$ 500.00 & \$ 26,049.22 \
\hline
\end{array}$$ ​
-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 5

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 6

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 accrued expense that represents unpaid vacation time owed to employees. As such, it requires an adjusting entry at the end of each accounting period to recognize the expense and the corresponding liability. Garnishment for child support payments, withholdings for a 401(k) plan, and union dues withheld are all payroll deductions that are typically recorded when the payroll is processed and do not require adjusting entries at the end of the period. Therefore, the answer is not E (None of the above) because choice C requires an adjusting entry.

Question 7

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

Child support orders have top priority over all other garnishments, including federal tax levies and creditor garnishments. This is because the government considers it a priority to ensure that children receive the financial support they need from their parents.

Question 8

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 correct entry is to debit FUTA Taxes Payable (as it is a liability account) and credit Cash (as money is leaving the company's bank account). Therefore, option D is the best choice.

Question 9

Exhibit 6-1
The totals from the first payroll of the year are shown below.
​ $$\begin{array} { c c c c c c c } 
\text { Total } & \text { FICA } & \text { FICA } & \text { FIT } & \text { State } & \text { Union } & \text { Net } \
\text { Earnings } & \text { OASDI } & \text { HI } & \text { W/H } & \text { Tax } & \text { Dues } & \text { Pay } \
\$ 36,195.10 & \$ 2,244.10 & \$ 524.83 & \$ 6,515.00 & \$ 361.95 & \$ 500.00 & \$ 26,049.22 \
\hline
\end{array}$$ ​
-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 10

Exhibit 6-1
The totals from the first payroll of the year are shown below.
​ $$\begin{array} { c c c c c c c } 
\text { Total } & \text { FICA } & \text { FICA } & \text { FIT } & \text { State } & \text { Union } & \text { Net } \
\text { Earnings } & \text { OASDI } & \text { HI } & \text { W/H } & \text { Tax } & \text { Dues } & \text { Pay } \
\$ 36,195.10 & \$ 2,244.10 & \$ 524.83 & \$ 6,515.00 & \$ 361.95 & \$ 500.00 & \$ 26,049.22 \
\hline
\end{array}$$ ​
-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...

Question 11

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 does not provide information for completing the journal entry to record the payroll. This information usually comes from other sources such as time cards and payroll registers. The earnings record does provide 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.

Question 12

Exhibit 6-1
The totals from the first payroll of the year are shown below.
​ $$\begin{array} { c c c c c c c } 
\text { Total } & \text { FICA } & \text { FICA } & \text { FIT } & \text { State } & \text { Union } & \text { Net } \
\text { Earnings } & \text { OASDI } & \text { HI } & \text { W/H } & \text { Tax } & \text { Dues } & \text { Pay } \
\$ 36,195.10 & \$ 2,244.10 & \$ 524.83 & \$ 6,515.00 & \$ 361.95 & \$ 500.00 & \$ 26,049.22 \
\hline
\end{array}$$ ​
-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 13

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 are not an expense of the employer, they are deducted from the employee's paycheck and paid directly to the union. The other options listed (FUTA tax, FICA tax-HI, FICA tax-OASDI, and SUTA tax) are all employer taxes and therefore expenses borne by the employer.

Question 14

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 made at the end of the accounting period to record wages incurred but unpaid is Wages Expense and Wages Payable. This entry reflects the amount of wages earned by employees during the period that have not yet been paid. Option A correctly reflects this entry. Option B includes additional accounts (FICA taxes and FIT payable) that are not relevant to recording accrued wages. Option C only records the liability and not the expense. Option D records the payment of wages, not the accrual of unpaid wages. Option E includes payroll taxes, which is not necessary when recording accrued wages.

Quiz 6: Analyzing and Journalizing Payroll

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

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?

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

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:

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

The garnishment that takes priority over all others is :​

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

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

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

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

The garnishment that takes priority over all others is :