111.
A company sold $12,000 worth of bicycles with an extended warranty. It estimates that 2%
of these sales will result in warranty work. The company should:
112.
A company sold $12,000 worth of bicycles with an extended warranty. It estimates that 2%
of these sales will result in warranty work. The current period’s entry to record the
warranty expense is:
113.
The deferred income tax liability:
114.
A company estimates that warranty expense will be 4% of sales. The company’s sales for
the current period are $185,000. The current period’s entry to record the warranty expense
is:
115.
A company has a selling price of $1,800 each for its printers. Each printer has a 2 year
warranty that covers replacement of defective parts. It is estimated that 2% of all printers
sold will be returned under the warranty at an average cost of $150 each. During
November, the company sold 30,000 printers, and 400 printers were serviced under the
warranty at a total cost of $55,000. The balance in the Estimated Warranty Liability
account at November 1 was $29,000. What is the company’s warranty expense for the
month of November?
116.
Springfield Company offers a bonus plan to its employees and the amount of the employee
bonuses for the current year is estimated to be $32,500 to be paid during January of the
following year. The journal entry on December 31 to record the bonuses is:
117.
A payroll register does not include:
118.
The wage bracket withholding table is used to:
119.
A table that shows the amount of federal income tax to be withheld from an employee’s
pay is the:
120.
Companies may use a special bank account solely for the purpose of paying employees, by
depositing an amount equal to the total employees’ net pay into the account each pay
period and drawing the employees’ payroll checks on the account. This account is a(n):
121.
If a company uses a special payroll bank account:
122.
Cantrell Company is required by law to collect and remit sales taxes to the state. If
Cantrell has $8,000 of cash sales that are subject to an 8% sales tax, what is the journal
entry to record the cash sales?
123.
Furniture World is required by law to collect and remit sales taxes to the state. If Furniture
World has $78,000 of cash sales that are subject to a 6% sales tax, what is the journal
entry to record the cash sales?
124.
All of the following statements regarding long-term liabilities are true
except
?
125.
On April 12, Hong Company agrees to accept a 60-day, 10%, $4,500 note from Indigo
Company to extend the due date on an overdue account. What is the journal entry needed
to record the transaction by Indigo Company?
126.
On April 12, Hong Company agrees to accept a 60-day, 10%, $4,500 note from Indigo
Company to extend the due date on an overdue account. What is the journal entry needed
to record the payment of the note by Indigo Company on the maturity date?
127.
On May 22, Jarrett Company borrows $7,500 from Fairmont Financing, signing a 90-day,
8%, $7,500 note. What is the journal entry needed to record the transaction by Jarrett
Company?
128.
On May 22, Jarrett Company borrows $7,500 from Fairmont Financing, signing a 90-day,
8%, $7,500 note. What is the journal entry needed to record the payment of the note by
Jarrett Company on the maturity date?
129.
An employee earns $5,500 per month working for an employer. The FICA tax rate for Social
Security is 6.2% of the first $118,500 earned each calendar year and the FICA tax rate for
Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax
rate is 4.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s
pay. The employee has $182 in federal income taxes withheld. The employee has voluntary
deductions for health insurance of $150 and contributes $75 to a retirement plan each
month. What is the amount of net pay for the employee for the month of January?
130.
An employee earned $4,600 in February working for an employer. The FICA tax rate for
Social Security is 6.2% of the first $118,500 earned during each calendar year and the
FICA tax rate for Medicare is 1.45% of all earnings. The employee has $644 in federal
income taxes withheld and has voluntary deductions for health insurance of $50 and
contributes 10% of gross pay to a retirement plan each month. The employer pays the
$200 remainder of the health insurance premium and an equal amount of contribution to
the retirement fund. What is the amount of net pay for the employee for the month of
February?
131.
An employee earns $5,500 per month working for an employer. The FICA tax rate for Social
Security is 6.2% of the first $118,500 of earnings each calendar year and the FICA tax rate
for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax
rate is 4.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s
pay. The employee has $182 in federal income taxes withheld. The employee has voluntary
deductions for health insurance of $150 and contributes $75 to a retirement plan each
month. What is the amount the employer should record as payroll taxes expense for the
employee for the month of January?
132.
An employee earned $4,600 in February working for an employer. Cumulative earnings of
the previous pay periods are $4,800. The FICA tax rate for Social Security is 6.2% of the
first $118,500 of earnings each calendar year and the FICA tax rate for Medicare is 1.45%
of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 4.4%. Both
unemployment taxes are applied to the first $7,000 of an employee’s pay. What is the
amount the employer should record as payroll taxes expense for the month of February?
133.
All of the following statements regarding FICA taxes are true
except:
134.
Athena Company provides employee health insurance that costs $5,000 per month. In
addition, the company contributes an amount equal to 5% of the employees’ $120,000
gross salary to a retirement program. The entry to record the accrued benefits for the
month would include a:
135.
Athena Company’s salaried employees earn two weeks of vacation per year. It pays
$858,000 in total employee salaries for 52 weeks but its employees work only 50. Record
Athena Company’s weekly journal entry to record the vacation expense:
136.
All of the following statements related to current liabilities for U.S. GAAP and IFRS are
true
except
:
137.
All of the following statements related to recording warranty expense are true
except
: