Chapter 10 – Liabilities: Current, Installment Notes, and Contingencies
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Page 31
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.14 – Payroll/Other Compensation
ACCT.AICPA.BB.03 – Legal
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:27 PM
DATE MODIFIED:
10/16/2017 5:43 PM
77. Which of the following will have no effect on an employee’s take-home pay?
a.
social security tax
b.
unemployment tax
c.
marital status
d.
number of exemptions claimed
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.10-02 – LO: 10–01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.14 – Payroll/Other Compensation
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:27 PM
DATE MODIFIED:
10/16/2017 5:43 PM
78. Sadie White receives an hourly rate of $30, with time and a half for all hours worked in excess of 40 during a week.
Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $300; social security tax
rate, 6.0%; and Medicare tax rate, 1.5%. What is the net amount to be paid to White?
a.
$1,443
b.
$1,143
c.
$1,260
d.
$1,560
ANSWER:
b
RATIONALE:
Gross pay = Earnings at regular rate + Earnings at overtime rate = [($30 × 40 hours) +
($30 × 1.5 × 8 hours)] = $1,560
Net pay = Gross pay – (Federal income tax + Social security tax + Medicare tax) =
$1,560 – [$300 + ($1,560 × 6.0%) + ($1,560 × 1.5%)] = $1,143
POINTS:
1
DIFFICULTY:
Bloom’s: Applying
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.10-02 – LO: 10–01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.14 – Payroll/Other Compensation
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
Chapter 10 – Liabilities: Current, Installment Notes, and Contingencies
Copyright Cengage Learning. Powered by Cognero.
Page 34
a.
social security tax
b.
federal income tax
c.
federal unemployment tax
d.
state unemployment tax
ANSWER:
b
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.10-02 – LO: 10–01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.14 – Payroll/Other Compensation
ACCT.AICPA.BB.03 – Legal
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:27 PM
DATE MODIFIED:
10/16/2017 5:43 PM
84. Lee Company has the following information for the pay period of December 15–31:
Gross payroll
$16,000
Federal income tax withheld
$4,000
Social security rate
6%
Federal unemployment tax rate
0.8%
Medicare rate
1.5%
State unemployment tax rate
5.4%
Assuming no employees are subject to ceilings for taxes on their earnings, Salaries Payable would be recorded for
a.
$16,000
b.
$9,808
c.
$10,800
d.
$11,040
ANSWER:
c
RATIONALE:
Salaries Payable = Gross payroll – Social security tax – Medicare tax – Federal income
tax
Salaries Payable = $16,000 – ($16,000 × 6%) – ($16,000 × 1.5%) – $4,000 = $10,800
POINTS:
1
DIFFICULTY:
Bloom’s: Applying
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.10-02 – LO: 10–01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.14 – Payroll/Other Compensation
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:27 PM
DATE MODIFIED:
10/16/2017 5:43 PM
85. Payroll taxes levied against employees become liabilities
a.
the first of the following month
Chapter 10 – Liabilities: Current, Installment Notes, and Contingencies
Salaries
FICA taxes withheld
b.
when the payroll is paid to employees
c.
when data are entered in a payroll register
d.
at the end of an accounting period
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.10-03 – LO: 10–03
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.14 – Payroll/Other Compensation
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:27 PM
DATE MODIFIED:
10/16/2017 5:43 PM
86. An employee receives an hourly wage rate of $15, with time and a half for all hours worked in excess of 40 during the
first week of the calendar year. Payroll data for the first week of the calendar year are as follows: hours worked, 48;
federal income tax withheld, $120; social security tax rate, 6%; and Medicare tax rate, 1.5%; state unemployment tax,
5.4% on the first $7,000; federal unemployment tax, 0.8% on the first $7,000. What is the net amount to be paid to the
employee?
a.
$568.74
b.
$601.50
c.
$660.00
d.
$574.90
ANSWER:
b
RATIONALE:
Gross pay = Earnings at regular rate + Earnings at overtime rate
Gross pay = [($15 × 40 hours) + ($15 × 1.5 × 8 hours)] = $780
Net pay = Gross pay – (Federal income tax + Social security tax + Medicare tax)
Net pay = $780 – [$120 + ($780 × 6.0%) + ($780 × 1.50%)] = $601.50
POINTS:
1
DIFFICULTY:
Bloom’s: Applying
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.10-02 – LO: 10–01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.14 – Payroll/Other Compensation
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:27 PM
DATE MODIFIED:
10/16/2017 5:43 PM
