CHAPTER 6
True-False Questions
6–2
never appear on the payroll register.
6–3
record the employer’s payroll taxes.
6–4
employee’s accumulated wages.
In order to prepare Forms W-2, an employer would utilize the
6–4
employee’s earnings record.
6–6
posted to the appropriate general ledger accounts.
6–6
credit side of the journal entry to record the payroll.
If wages are paid weekly, postings to the employee’s earnings record
6–4
would be done once a month.
6–6
wage expense that must be debited.
6–6
to Salary Expense in the payroll entry.
The wage and salaries expense account is an operating expense
6–6
account debited for total net pay each payroll period.
6–6
federal income tax and also the employer’s match of that tax.
6–6
the amount of federal income taxes withheld from employees’ wages.
6–8
credited to a liability account.
6–8
employer, a journal entry is made debiting the liability account and
crediting the cash account.
6–9
employer can discharge an employee simply because the employee’s
wage is subject to garnishment for a single indebtedness.
6–9
the earnings remaining after any deductions for health insurance.
E–48 Chapter 6/Examination Questions
6–9
subject to garnishment.
6–9
are not part of the disposable earnings subject to garnishment.
T 19.
6–11
to either the cash account or the salaries payable account.
F 20.
6–14
of employment.
6–15
must be turned over to the state after the next payday.
F 22.
6–17
employer’s federal unemployment taxes.
T 23.
6–16
SUTA.
6–16
FICA, FUTA, and SUTA taxes on the employer.
T 25.
6–17
and liabilities of the employer.
6–16
credits to the liability accounts for FICA (OASDI and HI), FUTA, and
SUTA taxes.
F 27.
6–17
The employer’s payroll tax expenses are recorded by all employers at
the time these taxes are actually paid.
6–16
employer’s portion of the FICA tax.
6–17
on Form 940, the employer’s payroll tax entries should include the
FUTA tax at the gross amount (6.0%).
T 30.
6–17
amount (0.6%) of the taxable payroll.
F 31.
6–17
recorded only at the time of payment.
At the time that the entry is made to record the employer’s payroll
6–17
taxes, the SUTA tax is recorded at the net amount (0.6%).
6–17
same expense account as the other payroll taxes on the employer, the
payroll taxes account.
T 17.
Examination Questions/Chapter 6 E–49
6–19
deduction should be shown in the payroll tax entry.
6–21
shares of FICA taxes are paid along with the employees’ FIT taxes
withheld.
In the adjusting entry to accrue wages at the end of the accounting
6–22
period, there is no need to credit any tax withholding accounts.
6–23
an accounting period includes credits to the tax withholding liability
accounts.
6–23
time in a liability account at the end of each accounting period.
6–24
made from union members’ wages for their union dues.
Posting to the general ledger for payroll entries is done only at the end
6–28
of each calendar year.
Multiple-Choice Questions
6–2
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
6–4
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.
6–6
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
E–50 Chapter 6/Examination Questions
6–9
Which of the following accounts is an expense account in which an
a. a federal tax levy.
b. a government student loan.
c. a creditor garnishment.
d. an administrative wage garnishment.
e. a child support order.
6–16
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
6–16
a. FUTA tax
b. FICA tax—HI
c. FICA tax—OASDI
d. SUTA tax
e. Union dues withheld
6–22
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
Examination Questions/Chapter 6 E–51
6–22
Which of the following items would require an adjusting entry at the end
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
6–23
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
6–23
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.
E–52 Chapter 6/Examination Questions
Problem-Solving
The totals from the first payroll of the year are shown below.