Prepare absorption costing-based income statements for Magic Me Corporation using theoretical capacity, practical capacity, and normal capacity utilization as the denominator levels. General ledger (2), True or False: The employer social security tax rate is different than the employee social security tax rate. Multiple choice question. -department breakdown of labor cost, billiable and nonbillable time The amount on the employee earnings record used to determine if certain payroll taxes apply to an employee's earnings is (A) net pay. What other blunt questions do you think would be appropriate? Find the total for each response. (B) federal income tax withheld. 3. When does peak efficiency occur? payroll register. (2), True or False: Employer payroll taxes are business expenses. a. can take 50% of an employee's disposable income for child support payments. The typical overtime rate is $5.00 more than the regular hourly rate. Multiple select question. \end{array} The time required to verify and fill a common prescription at a neighborhood pharmacy is normally distributed with a mean of 10 minutes and a standard deviation of 3 minutes. Every general journal entry will have at least Did you deposit the payroll taxes? When the fair value of the affiliate stock increases. a. E) Union dues withheld, 17. (A) a check. It produces a plastic toy in three separate departments: Molding, Assembling, and Finishing. (D) tax withholding form. - Designated to inform managers and department heads. and more. y=100(1e0.462t). (C) yearly The account balances form the basis for accounting reports. Once the transaction has been recorded in the General Journal, the accountant posts the entry to corresponding General Ledger accounts, a combination of letters and numbers. The production-volume variance is written off to cost of goods sold. a.ERISA ensures that workers covered by private pension plans receive benefits from those plans in accordance with their credited years of service with their employers. \text{Normal capacity utilization} & \text{232.558} & \text{units}\\ The maximum amount of gross earnings on which a tax is calculated, A retirement plan approved by the Internal Revenue Service. (B) during the month following each calendar quarter. B) False, 9. E) preparing the payroll register. EE retirement income security act (ERISA). -employees earn wages . d. What age group is most likely to purchase the product? Assume an initial starting FtF_tFt of 300 units, a trend (Tt)\left(T_t\right)(Tt) of eight units, an alpha of 0.300.300.30, and a delta of 0.400.400.40. (C) a memorandum. Multiple select question. true or false:The first task in preparing a payroll is to determine the number of days worked by each employee. Did you have the returns checked for accuracy? Allocate employee expenses to specific departments, Tax withholding and remittance Multiple choice question. Employee taxes Employer has the right to control both what work will be done and how it will be done. What is the connection between the employees' earnings records and payroll tax reporting? salaries and wages payable. (B) January 1 of the following year. The general journal entries will be in what order 30 seconds . for each event. (B) a receipt. (p. 389), The form used to report annual earnings and payroll taxes for all employees to the Social Security Administration is the c. employees can be required to participate in an employer's pension plan. -journal entries to post to unknown accounts Define the process of "posting." \hline \text { Costs incurred during the year } & \$ 300,000 & \$ 1,575,000 \\ Compute the amount of revenue and gross profit or loss to be recognized in 2021 and 2022 assuming Nortel recognizes revenue over time according to percentage of completion. c. to aid in completion of year-end informational returns, such as W-2s. Accounting II: Chapter 13 Flashcards | Quizlet -credit state withholding $1,234 Payment of statutory withholding A) True Payments to sales taxing authorities Multiple choice question. Study with Quizlet and memorize flashcards containing terms like How can the information shown in the employees' earnings record be used? D) a percentage of the previous week's gross payroll. -Each entry will be on one side per account. (D) none of these. (C) W-3 d. the account "Vacation Benefits Expense" is accrued. (D) W-4. b.The employee Express her balance after one week algebraically. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2021 assuming Nortel recognizes revenue over time according to percentage of completion. Accounting Ch. 13 Test Flashcards | Quizlet c. his/her applicable annual standard deduction based on marital status plus the number of exemptions claimed on Form 668-W. How does a payroll accountant use the information in the General Ledger? Multiple choice question. . The first pair of debit and credit columns on the general ledger are for: The second set of debit and credit columns in the general ledger show: The cash based business will show an increase in payroll expenses when: In a manufacturing environment, which of the employees time would be considered entirely directly billable? Accounts Payable -when managers want to pay employees later. B) completing the journal entry to record the payroll. Add. B) Federal Income Taxes Payable (See Immigration Law.). T-tables. Examples of payroll related liabilities include: Garnishments employers' HI portion of FICA taxes is not.. Credit accounting information Payroll Chapter 1 Matching Flashcards | Quizlet Study with Quizlet and memorize flashcards containing terms like The _____ is a multicolumn form used to assemble and summarize the data needed at the end of each payroll period. a.The Federal Unemployment Tax Act (FUTA) FICA Taxes Payable - OASDI $1,534.78 -Recording the individual balances of each paycheck. There are no price, spending, or efficiency variances. d. companies are allowed to automatically enroll employees in the company's retirement plan. Based on the data presented in the previous exercise, journalize Belarus Co.s entries for (c) the payment of the invoice within the discount period. true or false:Payroll taxes withheld represent a liability for an employer until payment is made. Recording expenses only when paid is an example of: a. is used to record Workers' Compensation premiums paid by the company. (D) in all 50 states. Apart from the recording of payroll and payment to employees, what other payroll related journal entries would be recorded? a. the expense has already been recorded. What are the common components of the posting reference? general accounting, Fritz Industries accrued payroll state withholding of $1,234 for the current payroll. d. under ERISA, must withhold pension and retirement benefits before any other deduction. D) a percentage of the previous week's gross payroll. $845.00 - $476.93 = $368.07. incurs as an expense each payday? Study Payroll Accounting Final Vocabulary Flashcards | Quizlet ACC 301 - Chapter 14 "Stockholders' Equity", Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamentals of Financial Management, Concise Edition, Don Herrmann, J. David Spiceland, Wayne Thomas, Lecture 7 - biological basis of language Part. Multiple choice question. CostsincurredduringtheyearEstimatedcoststocompleteasof12/31BillingsduringtheyearCashcollectionsduringtheyear2021$300,0001,200,000380,000250,0002022$1,575,00001,620,0001,750,000. Cash True or False: In each pay period, the payroll information for each employee is recorded on his or her employee earnings record. State unemployment tax Did you prepare tax deposits and have them checked for accuracy? (C) deposit. -current amount of reduction to the payroll account Wages Payroll, Which of the following items would require an adjusting entry at the end of each accounting period? Yields the data needed for financial reports T F, The only portion of wages that are exempt from a federal tax levy is: Payments for payroll regulation courses, Payment of statutory withholdings Employee Earnings Record. Multiple choice question. Promote analysis of payroll expenses. B) Payroll Taxes- Cash \text{Option \#1:}&&\text{\$ 12,000,000 after five years}\\ True or False: In each pay period, the payroll information for each employee is recorded on his or her employee earnings record. \text{Practical capacity} & \text{279.070} & \text{units}\\ -current balance in the payroll account Have you included any other mandatory deductions? remove the accrual from the account balances. \text { Billings during the year } & 380,000 & 1,620,000 \\ Wages Expense Disposable earnings are the earnings remaining after withholding federal income taxes. a. a debit to Vacation Benefits Payable = $1,178. (A) December 31 of the current year. (C) FUTA earnings employee income tax payable \\\hline and more. The cash based businesses will show an increase in payroll expenses when: Did you journalize and post the employees' payroll transaction? salaries and wages payable. The following accounts receivable information pertains to Growth Markets LLC. B) False, FICA Taxes PayableHI is a liability account in which is recorded the liability of the employer Entering the payroll journal entry. \end{array} (6), True or False: Each employer who withholds income tax, social security tax, and Medicare tax from employee earnings must furnish each employee with a quarterly statement. management/department heads True Study with Quizlet and memorize flashcards containing terms like a business form used to record payroll information os, the total earnings paid to an employee after payroll taxes and other deductions, a business form used to record details affecting payments made to an employee is and more. Calculate the amount of cash payments Jacobs was required to make in each of the two calendar years that were affected by the note payable. True Employee payments B) False, 29. Multiple choice question. D) Salaries Payable B) Payroll Taxes (D) tax fulfillment. If actual demand turned out to be 288 , calculate the forecast for the next period. You may assume that f(0)=0f(0)=0f(0)=0. Multiple choice question. The adjusting entry to record accrued vacation pay for two days includes: A) True If there are employees who have taken payroll advances, which are amounts to be repaid by the employee, these will show in the current assets section. (D) revenue. Tax Expense is debited for both the employees' and the employer's portions of the FICA taxes. and more. (7), True or False: If the tax base for calculating unemployment taxes is $7,000 and an employee's accumulated earnings are $6,500.00, and the employee earns another $1,500.00, the amount of new earnings subject to unemployment tax is $1,500.00. d. a credit to Vacation Benefits Payable = $1,178. Revenue 1. Union Dues. c. It facilitates accuracy in employee personnel records. A qualified retirement plan sponsored by an employer. A separate record of each employee's . The payroll register provides all the payroll information needed to prepare a payroll. A) True What taxes would be monitored for maximum withholding amounts through the payroll register? A garnishment cannot exceed 25 percent of an employee's gross pay. b. a credit to Cash = $1,178. regular earnings plus overtime earnings. C) Payroll Taxes- FUTA Taxes Payable Antidiscrimination orders for employees with contracts involving federal funds. expenditures or expenses Payroll records serve as backup for Payroll Accounting Flashcards | Quizlet a. When employees actually use their vacation time A) Payroll Taxes \text{Total budgeted fixed manufacturing costs} & \text{\$ 3.000.000}\\ following except: Multiple choice question. Journal entry and page number. Cash a percentage of the previous week's gross payroll. 2020, to record compensation expense, if any, in 2020. c. Prepare the entry on December 31, 2020, assuming that all 150,000 SARs are exercised. -Employee supervisor Kelly has d dollars in an account that pays 1.4% interest compounded weekly. T F, The employer keeps track of each employee's accumulated wages in the employee's earnings record. allocating employee expenses to departments. What account would be classified as a liability account? 4. The Form 940 is the source document for all employee payroll journal entries. c. It facilitates accuracy in employee personnel records. no general ledger postings. Tips received by employees are included as disposable earnings subject to garnishment for child support. Chapter 12 accounting Flashcards | Quizlet (C) employee accounts payable record. 13. True (D) employee earnings account. d. a credit to Vacation Benefits Payable = $1,178. b.To provide protection only for workers under the age of 18 Company viability depends on expense control, form the link between the accounting and the human resource departments. Multiple choice question. General ledger entries are made ______ (after/before) general journal entries. Allocate employee expenses to specific departments. What is the opportunity cost of the machine when we analyze the alternative to produce 12 oz. create the need for more entries. C) Payroll Taxes- FUTA Taxes Payable True Payroll Accounting 2018 CH 7 Flashcards | Quizlet When recording the deposit of FUTA taxes owed, the proper entry is: 8. salaries and wages expense. the description is usually left blank. general ledger entries. End-of-Period Adjustments: $845.00 - $364.42 = $480.58. Fair Labor Standards Act. c. is used to record Workers' Compensation premiums paid by the employee. -bring the accountant to the related entry in the general journal. -Employer matches 401(k) contributions b.FUTA funds are used to pay the state and federal administrative expenses and SUTA funds are used to pay the unemployment compensation benefits to the qualified unemployed workers. Study with Quizlet and memorize flashcards containing terms like In each pay period, the payroll information for each employee is recorded on his or her employee earnings record, The payroll register provides all the payroll information needed to prepare a payroll, A business deposits the total of gross wages in a separate payroll checking account and more. Multiple choice question. medicare tax payable (1time) The garnishment that takes priority over all others is: \text{Over 90 days}&\text{\hspace{5pt}15,330}&\text{25\\\%}\\ b. the standard deduction of the taxpayer. Individual payroll checks are usually written on a(n) (A) company's regular checking account. Federal withholding tax, Social Security tax B) False, Net pay" is sometimes known as "take-home" pay. b. all employers are now mandated to contribute at least 2% of gross wages to an employee's retirement account. -when new entries reduce the account balance Which portion of the accounting equation represents the amounts owed by the company? 20. Payroll Accounting Ch 1 Flashcards | Quizlet Which of the following does not describe a purpose of the employee's earnings records? Is it payday? a.Employees over the age of 40 who have held high policymaking positions during the two-year period prior to retirement costs(allfixed), Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Daniel F Viele, David H Marshall, Wayne W McManus, Fundamentals of Financial Management, Concise Edition, Macro 01: The Core Principles of Economics. Multiple select question. Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Jeffrey Jaffe, Randolph W. Westerfield, Stephen A. Ross, Module 10: Influences on Real Estate Values. (C) shows net pay for one quarter. -Disciplinary actions The record of all of a firm's financial transactions. (b) The second group will assess whether Tipton and Seferi can assert a defense by claiming that they did not know that the workers were unauthorized aliens. 7 and 8) 141 terms. Multiple select question. c.10 a. a single standard deduction plus an exemption for the employee. The reports are identical and provide necessary b.Executive employees who are 65 years or older and have held high policymaking positions during the two-year period prior to retirement. It adds complexity to the personnel recordkeeping. (B) is the total earnings since the first of the year. d.None of these choices are correct. Unclaimed employee wages are returned to the employer. 5. -Employee contributes to United Way a. they are part of the payroll package required to be sent to the IRS on an annual basis. The payment of payroll taxes to the government is referred to as a (b) How long does it take for yyy to reach 505050? Medicare tax b. d. are required when the fiscal accounting period does not coincide with the end of the payroll period. -union negotiations. 2 general ledger postings. FICA Taxes Payable-HI Are the tax returns and remittances approved and signed by the appropriate parties? Do you know much each employee should be paid? The total earnings paid to an employee after payroll taxes and other deductions is recorded in the payroll register's (A) Gross Pay column. payment to employee based on a stated percentage of revenue. a. can take 50% of an employee's disposable income for child support payments. Write the equation of the line passing through (5,-3) and parallel to the line with equation 2x+y=-3. MASTERING CORRECTION OF ACCOUNTING ERRORS TES, Totalbudgetedoperating(non-manuf.) Apart from recording of payroll and payment to employees, what other payroll related journal entries would be recorded? Contributions payable (4), True or False: The transaction to record employer payroll taxes expense is journalized at the end of the quarter. d. are required when the fiscal accounting period does not coincide with the end of the payroll period. Income Statement, A labor report provided to management would display: credit to cash, debit to liability. Since vacation time is paid when used, there is no need to accrue this time in a liability account at the end of each accounting period. engaged in a job in which tips of more than $30 a month are regularly recieved. dividends, equity, assets. -Entering the transactions in the general journal. Allocate employee expenses to specific accounts Multiple choice question. Employee regular earnings are calculated as (A) regular hours times regular rate. What is always true about the income statement? would be reduced by every transaction -by account type. Provides information for decision-makers about costs and company profitability Balance sheet Denominator-level choices, changes in inventory levels, effect on operating income. Multiple select question. (C) annually. (D) January 31 of the following year. -employees are paid Chapter 8: Payroll Accounting Flashcards | Quizlet Based on 1740 responses, what is the percent of each response? Did you update the employees' earning records? True When remitting or depositing federal income taxes, the employer credits the cash account. True. (D) none of these. Multiple select question. Study with Quizlet and memorize flashcards containing terms like What changes should be included in the employee earnings record?, Earnings records are supporting documents for, Which portion of the accounting equation represents the amounts owed by the company? (B) a receipt. Entering the transactions in the general ledger. B) False, 14. (D) accumulated earnings. Why is it important for a firm to use both a payroll register What if each firm produces a somewhat different product? four employees. At a minimum, how often should an administrator furnish a statement of total benefits accrued and accrued benefits that are vested under ERISA? b. variable, depending upon county that the levy originates. -tax deposits. Do you have managerial approval for all employee pay for the period? Federal Income Taxes Payable A fundamental concept in accounting is the _____ ____ , which must remain balanced. unemployment tax payable-state (multiply salary expense by 5.4%). The following information was obtained for the Assembling Department for the month of September. d.12. Have you prepared the appropriate tax returns? d.None of these choices are correct. A) Garnishment for child support payments redundancy. answer choices . False, Where will entries for payroll show in the income statement? A) True The employee earnings records form the link between the ____ and ____ _____ departments. Multiple choice question. -Balances in the general ledger payroll accounts are used in payroll reports. staffing pr income projections, connects directly to the employee's earnings records. A qualified retirement plan that provides most individuals with a deferred federal income tax benefit. Interest was paid quarterly, and the note was repaid one year from the time the money was borrowed. Identify some of the groups of users. Wages Expense bank reconciliation. An accounting firm would pay higher Workers' Compensation Insurance premiums than a steel mill because their employee wages would be higher. ACC 140 chapter 6 Flashcards | Quizlet 1. The payment of an employee's net pay using electronic funds transfer, A method of paying an employee based on the amount of sales the employee generates. 1 general ledger posting. (B) payroll journal. A) completing forms W-2. c. are the earnings remaining after withholding income taxes and other amounts required by law. In other terms, a payroll . True (C) withholding allowances. b. is used to record the company's' liability to injured workers. A description is sometimes included. A payroll accrual would be Assets (B) marital status. Study with Quizlet and memorize flashcards containing terms like Unclaimed employee wages are returned to the employer. for the HI tax on the employer as well as for the HI tax withheld from employees' wages. Before beginning production of its new vacuum cleaner, the Devaney Company conducted an opinion survey of 1740 people. b. d. is used to record Workers' Compensation payments to injured workers. Take-home pay minus weekly standard deduction and exemptions = federal tax levy garnishment. general journal entries. Do you know what pay method each employee needs? False. Deductions from gross pay in the payroll register are reflected on the credit side of the journal entry to record the payroll. Multiple choice question. T F, For the purpose of a federal tax levy, the IRS defines take-home pay as the gross pay less taxes When using the equity method of accounting, when is revenue recorded on the books of the investor company? Multiple select question. -when payday is after the end of the month. General Leger account balances aggregate data to determine payroll costs -Supervisor change Multiple choice question. (B) net earnings employer records the FICA, FUTA, and SUTA taxes? Highest 50 percent c. Highest 5 percent, d. Highest 80 percent e. Lowest 10 percent f. Middle 50 percent, g. Lowest 93 percent h. Middle 95 percent i. a. Debits show increases to A debit to the employees' FIT payable account removes the liability for the amount of federal income taxes withheld from employees' wages. For each choice of denominator level, the budgeted production cost per unit is also the cost per unit of beginning inventory. (A) a revenue With the passage of the Pension Protection Act of 2006: 480.58 and more. Unions 7. -debit state withholding $1,234, The second set of debit and credit balances in a general ledger will: B) False, 3. a percentage of the previous week's gross payroll. Assuming you can earn 6% on your funds, which option would you prefer? What is the second line in the general journal entry used for? unemployment tax payable-federal(multiply salary expense by .8%) -Each entry will balance within the posting account. C. The employee completed the current version of Form W-4. Federal withholding tax, Which of the following are reversed as part of the payroll adjustment process? D. FUTA Taxes Payable (D) social security taxes. a.The Self-Employment Contributions Act sets the minimum wage and the current minimum wage rate is $9.19 per hour. All the payroll information needed to prepare payroll and tax reports is found on, C- Payroll register and employee earnings records provide, The payroll journal entry is based on the totals of the payroll register, The Total Earnings column total of a payroll register is journalized as a debit to, The total of the Federal Income Tax column of a payroll register is credited to (A) a revenue account, The total of the Net Pay column of the payroll register is credited to, When a semimonthly payroll is paid, the credit to Cash is equal to the, Payroll taxes that are paid by both the employer and the employee are, A tax paid to administer the unemployment program is the, A state tax used to pay benefits to unemployed workers is the, An employee's earnings subject to unemployment taxes are referred to as (A) gross \text { Cash collections during the year } & 250,000 & 1,750,000 Financial transactions can be displayed for explanation and evaluation through C246, Salary expense Medicare Tax Payable, Paid cash for semimonthly payroll; total payroll, $3,066.00, less employee income tax, $182.00, social security tax, and medicare tax. a. -account number and date, Where will entries for payroll show in the trial balance? What is the purpose of the Age Discrimination in Employment Act (ADEA)? B) $161.10 determined by: Allocate employee expenses to specific accounts b. E. Wages Expense using the wages of the salaried workers only. The accounting process generates financial reports for both internal and external users. Cash False. costs(allfixed)$500.000\begin{matrix} 26. employees' earnings records A federal tax paid for hospital insurance. C. pay period. The amount of employee pay left after federally mandated deductions are made, including federal and state income tax, social security . A payroll accrual occurs d. companies are allowed to automatically enroll employees in the company's retirement plan. (D) IRS Form 941. What is the production-volume variance in 2017 when the denominator level is (a) theoretical capacity, (b) practical capacity, and (c) normal capacity utilization? A posting reference in the general ledger should Amounts withheld from employees' wages for health insurance are credited to a liability account. Multiple choice question. C) Vacation pay earned by employees determining when the accumulated wages of an employee reach cutoff levels. FUTA Taxes Payable is an expense account in which are recorded the employer's federal unemployment taxes. At the time that the entry is made to record the employers payroll taxes, the SUTA tax is recorded at the net amount (0.6%). Since FUTA tax is paid only once a quarter, the FUTA tax expense is recorded only at the time of payment. B. -payroll entries are accrued B) completing the journal entry to record the payroll. (C) a liability account -Marital status Multiple select question. True nonqualified pre-tax insurance; retirement plan. collecting the time sheets for the days accrued. B. In accrual accounting, there may also be end-of-period entries to accrue for payroll earned by the employees. Multiple select question. When employees take vacation and use vacation time: general journal entries. Tipped employee. -Pay rate, In financial accounting, the fundamental accounting equation is. (C) a memorandum. would be used for reporting, All of the following are examples of payroll liabilities except: -when entries increase the account balance What is the primary purpose of the Employee Retirement Income Security Act (ERISA)? -Transactions from the general journal are posted to individual accounts. E) a child support order, 15. Study with Quizlet and memorize flashcards containing terms like Circular E, Form SS-4, Form SS-5 and more. Accounting system entries record all payroll-related activity Gross earnings. Suppose the learning rate is \text{31-90 days}&\text{\hspace{5pt}36,540}&\text{17\\\%}\\ The source document for paying employee income tax and social security and Medicare tax is: It can use the machine to produce 12 oz. -after journal entries are recorded, The second set of debit and credit columns in a general ledger show:
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