Question 1

Dooley Publishing has the following payroll data for its July 1 pay date: Jul 1 Wages and salaries expense 522 $ 182,930.00
Federal withholding tax payable 220 $ ???
Social Security tax payable 221 10,517.12
Medicare tax payable 222 2,459.65
401(k) contributions payable 223 6,402.55
Health Insurance payable 224 13,299.01
Union Dues payable 227 4,573.25
Wages and salaries payable 226 113,562.94
Jul 1 Wages and salaries payable 226 113,562.94
Cash 101 113,562.94
How much Federal withholding tax was deducted from employees' pay?

Accepted Answer

To determine the amount of Federal withholding tax deducted from employees' pay, we need to use the following formula:
Total payroll - (Social Security tax + Medicare tax + 401(k) contributions + Health Insurance + Union Dues + Net payroll) = Federal withholding tax
Substituting with the given data, we have:
$182,930.00 - ($10,517.12 + $2,459.65 + $6,402.55 + $13,299.01 + $4,573.25 + $113,562.94) = Federal withholding tax
$182,930.00 - $150,814.52 = Federal withholding tax
$32,115.48 = Federal withholding tax

Therefore, the answer is D) $32,115.48.

Question 2

Zipperle Company has the following payroll information for the pay period ending September 18, 20XX: Gross pay $ 27,894.50
Federal withholding tax $ 3,570.00
Social Security tax $ 1,670.56
Medicare tax $ 390.70
401(k) contributions $ 1,115.78
Health Insurance $ 950.00
Garnishment $ 450.00
Net pay $ 19,747.46
Which items would be debited in the General Journal entry to record the employees' share of the payroll?

Accepted Answer

The answer of Zipperle Company has the following payroll information...

Question 3

Which of these accounts is increased by a debit? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the
Box with the question mark to empty the box for a wrong answer. Any boxes left with a question
Mark will be automatically graded as incorrect.)

Accepted Answer

The answer of Which of these accounts is increased by...

Question 4

Supermeg Dry Cleaners had the following payroll data for its May 14 pay date: May 14 Wages and salaries expense 522 $ 187,327.54
Federal withholding tax payable 220 $ 31,845.68
Social Security tax payable 221 10,769.95
Medicare tax payable 222 2,518.78
401(k) contributions payable 223 6,556.46
Health Insurance payable 224 13,618.71
Union Dues payable 227 4,683.19
Wages and salaries payable 226 117,334.77
May 14 Wages and salaries payable 226 117,334.77
Cash 101 117,334.77
When the ﬁrm remits the union dues for this pay period, what is the correct General Journal entry?

Accepted Answer

The correct journal entry to remit the union dues is to debit Union Dues Payable to decrease the liability and credit Cash to reflect the payment.

Question 5

When a ﬁrm has wages earned but not yet paid at the end of a ﬁnancial reporting period, what must it do to recognize the liabilities and expenses?

Accepted Answer

The firm must create an adjusting entry to recognize the payroll accrual. This means that it needs to recognize the expenses and liabilities associated with the wages earned but not paid at the end of the financial reporting period. This adjusting entry will increase the expense account and create a corresponding liability on the balance sheet.

Question 6

In the following payroll transaction, what is the amount of the net pay? Jun 23 Wages and salaries expense 522 2,349,839.00
Federal withholding tax payable 220 399,472.63
Social Security tax payable 221 145,170.77
Medicare tax payable 222 33,951.23
401(k) contributions payable 223 93,993.56
Health Insurance payable 224 8,375.00
State Income tax payable 227 117,491.95
Wages and salaries payable 226 ???

Accepted Answer

The net pay is the total wages and salaries expense minus all taxes and deductions payable. Therefore, we need to calculate the sum of all taxes and deductions payable (220 + 221 + 222 + 223 + 224 + 227) and subtract it from the total wages and salaries expense (522). Net pay = 2,349,839.00 - (399,472.63 + 145,170.77 + 33,951.23 + 93,993.56 + 8,375.00 + 117,491.95) = 1,551,383.86.

Question 7

Which of these accounts is increased by a credit? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the
Box with the question mark to empty the box for a wrong answer. Any boxes left with a question
Mark will be automatically graded as incorrect.)

Accepted Answer

The answer of Which of these accounts is increased by...

Question 8

Supermeg Dry Cleaners had the following payroll data for its May 14 pay date: May 14 Wages and salaries expense 522 $ 187,327.54
Federal withholding tax payable 220 $ 31,845.68
Social Security tax payable 221 10,769.95
Medicare tax payable 222 2,518.78
401(k) contributions payable 223 6,556.46
Health Insurance payable 224 13,618.71
Union Dues payable 227 4,683.19
Wages and salaries payable 226 117,334.77
May 14 Wages and salaries payable 226 117,334.77
Cash 101 117,334.77
When the ﬁrm remits its health insurance premium for this pay date, what is the General Journal entry?

Accepted Answer

The correct journal entry to record the remittance of the health insurance premium is to debit Health Insurance Payable and credit Cash for the amount of $13,618.71, which is the amount payable for health insurance.

Question 9

Kierofree Air Tours has the following payroll data for its November 5 pay date: Nov 5 Wages and salaries expense 522 $ 199,023.00
Federal withholding tax payable 220 $ 33,833.91
Social Security tax payable 221 11,442.35
Medicare tax payable 222 2,676.03
401(k) contributions payable 223 6,965.81
Health Insurance payable 224 14,468.97
Union Dues payable 227 4,975.58
Wages and salaries payable 226 ???
How much is the net pay?

Accepted Answer

The net pay is calculated by subtracting all deductions from the total wages and salaries expense. The deductions include federal withholding tax, Social Security tax, Medicare tax, 401(k) contributions, health insurance, and union dues. Subtracting these from $199,023.00 gives $124,660.35.

Question 10

Which of the following is an example of an asset account?

Accepted Answer

Cash is a typical asset account, as it represents any money and funds held by a company or individual that can be used to make purchases or investments. Payroll tax expenses, revenue, and salaries payable are not asset accounts.

Question 11

McHale Enterprises has the following incomplete General Journal entry for the most recent pay date: Oct 27 Wages and salaries expense 522 $298,384.00
Federal withholding tax payable 220 $ 50,725.28
Social Security tax payable 221 17,980.56
Medicare tax payable 222 4,205.13
401(k) contributions payable 223 ???
Health Insurance payable 224 8,375.00
Savings bonds payable 227 1,850.00
Wages and salaries payable 226 202,671.98
Oct 27 Wages and salaries payable 226 202,671.98
Cash 101 202,671.98
What is the amount of the 401(k) contributions for the pay date?

Accepted Answer

The total debits must equal the total credits. The total debits are $298,384.00. The total credits, excluding the 401(k) contributions, are $285,807.95. The difference, which is the 401(k) contributions, is $12,576.05.

Question 12

On December 1, 20XX, Riley Sanders invested $250,000 to open Sanders Enterprises. What is the General Journal entry to record this transaction?

Accepted Answer

The correct journal entry is to debit Cash for $250,000, as the business is receiving cash, and credit R. Sanders Capital for $250,000, as it represents the owner's equity investment in the business.

Question 13

What is the term for transferring data from the General Journal to the General Ledger?

Accepted Answer

Posting is the term used to describe the transfer of data from the General Journal to the General Ledger. It involves recording the debits and credits for each transaction in the appropriate accounts in the General Ledger.

Question 14

Which of the following is an example of a liability account?

Accepted Answer

Salaries Payable is a liability account because it represents an obligation to pay employees for work they have already performed. The other options listed are not liability accounts - Cash is an asset account, Owners' Capital is an equity account, and Wages Expense is an expense account.

Question 15

In the following General Journal transaction, to what do the numbers 101 and 301 refer?

Accepted Answer

The numbers 101 and 301 are likely to be General Ledger account numbers, as the General Journal records transactions that affect specific accounts within the accounting system.

Question 16

What are the General Journal entries that should appear on each pay date?

Accepted Answer

The answer of What are the General Journal entries that...

Question 17

If a ﬁrm accrues the payroll due but not paid at the end of a ﬁnancial period, what should it do on the ﬁrst day of the next ﬁnancial period?

Accepted Answer

A reversing entry is made to cancel out the accrual entry from the previous period, simplifying the recording of the actual payroll payment.

Question 18

The following data is for the January 19 pay date for Waryzbok Inc.: Jan 19 Wages and salaries expense 522 $ 12,987.00
Federal withholding tax payable 220 $ 2,207.79
Social Security tax payable 221 ???
Medicare tax payable 222 ???
401(k) contributions payable 223 454.55
Health Insurance payable 224 944.15
State Income tax payable 227 324.68
Wages and salaries payable 226 8,134.55
Jan 19 Wages and salaries payable 226 8,134.55
Cash 101 8,134.55
Which of the following represents the missing Social Security and Medicare taxes, assuming that the health
Insurance is qualiﬁed under Section 125?

Accepted Answer

Social Security tax is 6.2% of wages and salaries, and Medicare tax is 1.45% of wages and salaries. The total wages and salaries for the pay period are $12,987.00, so the Social Security tax is $12,987.00 x 0.062 = $805.19, and the Medicare tax is $12,987.00 x 0.0145 = $188.31.

Question 19

Which of the following is an example of a liability account?

Accepted Answer

Liability accounts represent amounts owed to creditors or other parties. FUTA Payable represents unemployment taxes owed to the government but not yet paid, making it a liability account. Payroll Taxes Expense and Salaries and Wages Expense are both expense accounts, which represent costs incurred in running a business. Cash is an asset account, representing money the business has on hand or in the bank.

Question 20

In which order are transactions listed in the General Journal?

Accepted Answer

Transactions in the General Journal are listed in chronological order, meaning they are recorded in the order in which they occurred. This allows for easy tracking and identification of transactions over time.

Quiz 7: The Payroll Register, Employees Earnings Records, and Accounting System Entries

When a ﬁrm has wages earned but not yet paid at the end of a ﬁnancial reporting period, what must it do to recognize the liabilities and expenses?

Which of the following is an example of an asset account?

On December 1, 20XX, Riley Sanders invested $250,000 to open Sanders Enterprises. What is the General Journal entry to record this transaction?

What is the term for transferring data from the General Journal to the General Ledger?

Which of the following is an example of a liability account?

In the following General Journal transaction, to what do the numbers 101 and 301 refer?

What are the General Journal entries that should appear on each pay date?

If a ﬁrm accrues the payroll due but not paid at the end of a ﬁnancial period, what should it do on the ﬁrst day of the next ﬁnancial period?

Which of the following is an example of a liability account?

In which order are transactions listed in the General Journal?