Study
Guide
12
Name Perfect
Score
Your
Score
Identifying Accounting Terms 24 Pts.
Analyzing Payroll Procedures 5 Pts.
Identifying Accounting Practices 25 Pts.
Total 54 Pts.
Part One—Identifying Accounting Terms
Directions: Select the one term in Column I that best fits each definition in
Column II. Print the letter identifying your choice in the Answers column.
Contains accounting terms for Lessons 12-1 and 12-2.
Answers
1.
2.
3.
8.
9.
10.
11.
12.
13.
14.
15.
Column I
A. 401(k)
B. accumulated earnings
C. commission
H. payroll clerk
I. payroll deduction
J. payroll taxes
K. qualified retirement plan
L. Roth individual
retirement account
M. salary
N. social security tax
O. tax base
Column II
1. The amount paid to an employee for every hour worked. (p. 346)
2. A fixed annual sum of money divided among equal pay periods.
(p. 346)
3. A method of paying an employee based on the amount of
sales the employee generates. (p. 346)
8. A device used to record the dates and times of every employee’s
arrivals and departures. (p. 347)
9. Taxes based on the payroll of a business. (p. 351)
10. A deduction from total earnings for each person legally
supported by a taxpayer, including the employee. (p. 352)
11. Any amount withheld from an employee’s gross earnings. (p. 352)
12. A federal tax paid for old-age, survivors, and disability
insurance. (p. 355)
13. A federal tax paid for hospital insurance. (p. 355)
14. The total gross earnings year to date for an employee. (p. 355)
15. The maximum amount of gross earnings on which a tax is
calculated. (p. 355)
the account. (p. 356)
R
M
C
P
J
S
I
N
E
B
O
Directions: Select the one term in Column I that best fits each definition in Column II.
Print the letter identifying your choice in the Answers column.
Contains accounting terms for Lessons 12-3 and 12-4.
Answers
20.
21.
Column I
A. direct deposit
B. employee earnings
record
Column II
20. An accounting form that summarizes the earnings, deductions,
and net pay of all employees for one pay period. (p. 358)
21. The total earnings paid to an employee after payroll taxes and
other deductions. (p. 359)
Part Two—Analyzing Payroll Procedures
Directions: For each of the following items, select the choice that best completes the
statement. Print the letter of your choice in the Answers column.
1. How many hours were worked by an employee who arrived at 8:10 a.m. and departed at
12:10 p.m.? (A) 4 hours (B) 5 hours (C) 4 hours and 10 minutes (D) none of these. (p. 347)
2. How many hours were worked by an employee who arrived at 7:05 a.m. and departed at
6:05 p.m. with one hour off for lunch? (A) 11 hours (B) 10 hours (C) 12 hours (D) none of
these. (p. 347)
3. Employee regular earnings are calculated as (A) regular hours times regular rate (B) total
hours divided by regular rate (C) total hours plus overtime rate (D) overtime hours
minus overtime rate. (p. 349)
Answers
1.
2.
3.
D
A
C
B
A
Name Date Class
Part Three—Identifying Accounting Practices
Directions: Place a T for True or an F for False in the Answers column to show
whether each of the following statements is true or false.
1. A business may decide to pay employee salaries every week, every two weeks, twice a
month, or once a month. (p. 346)
3. Total earnings are sometimes referred to as net pay or net earnings. (p. 346)
2. Today’s time clocks can feed data directly into a company’s computer system. (p. 348)
8. The amount of income tax withheld from each employee’s total earnings is determined
from the number of withholding allowances and by the employee’s marital status. (p. 352)
9. A single person will have less income tax withheld than a married employee earning
the same amount. (p. 352)
10. The larger the number of withholding allowances claimed, the larger the amount of
income tax withheld. (p. 352)
11. An employee can be exempt from having federal income tax withheld under certain
conditions. (p. 352)
12. Social security tax is only paid by the employer. (p. 355)
13. An act of Congress can change the social security tax base and tax rate at any time. (p. 355)
14. When an employee’s accumulated earnings exceed the tax base, no more social security
tax is deducted. (p. 355)
Answers
1.
2.
3.
8.
9.
10.
11.
12.
13.
14.
T
F
T
T
F
F
T
F
T
T
21. The columns of the employee earnings record consist of the amount columns in a
payroll register and an Accumulated Earnings column. (p. 360)
22. A check for each employee’s total net pay is written on the general checking account of
the business. (p. 364)
Answers
21.
22.
T
F
Name Date Class
12-1 WORK TOGETHER, p. 350
Calculating hourly employee total earnings
1.
EMPLOYEE NO. 4
NAME Alice R. Webster
PAY PERIOD ENDED October 15, 20–
MORNING AFTERNOON EVENING HOURS
Day
IN OUT IN OUT IN OUT REG OT
Mon 01
754 1157 1256 502
Tue 02
800 1152 106 502
Wed 03
756 1201 104 501
Thu 04
759 1157 1259 459 601 933
Fri 05
1258 456 601 1010
Mon 08
801 1157 100 453
Tue 09
801 1203 1257 606
Employee
Number
Hours Worked Regular
Rate
Earnings Total
Earnings
Regular Overtime Regular Overtime
1 80 5 $ 9.00
2 80 3 12.50
2.
8
8
8
8 3.5
8
8
8 1.0
$ 720.00 $ 67.50 $ 787.50
1,000.00 56.25 1,056.25
12-1 ON YOUR OWN, p. 350
Calculating hourly employee total earnings
1.
EMPLOYEE NO. 34
NAME Mary Carol Prestwood
PAY PERIOD ENDED June 30, 20–
MORNING AFTERNOON EVENING HOURS
Day
IN OUT IN OUT IN OUT REG OT
Mon 16
855 1153 1252 605
Tue 17
906 1158 100 602
Thu 19
857 1200 100 603
Fri 20
855 1157 1259 552 601 910
856 1201 1252 553
2. Employee
Number
Hours Worked Regular
Rate
Earnings Total
Earnings
Regular Overtime Regular Overtime
25 88 5 $10.00
28 72 3 14.50
8
8
8
8 3.0
8
$ 880.00 $75.00 $ 955.00
1,044.00 65.25 1,109.25
Chapter 12 Preparing Payroll Records • 317
Name Date Class
12-2 WORK TOGETHER, p. 357
Employee Marital
Status
Number of
Withholding
Allowances
Total
Earnings
Federal Income Tax
Withholding
Social Security
Tax Withholding
Medicare
Withholding
No. Name
1 Clauson, John P. M 2$1,360.00
9Edison, Janice A. S 1980.00
Employee Marital
Status
Number of
Withholding
Allowances
Total
Earnings
Federal Income Tax
Withholding
Social Security
Tax Withholding
Medicare
Withholding
No. Name
3 Gilmore, Harris J. S 2$1,020.00
8 Keller, Francis P. M 31,810.00
12-2 ON YOUR OWN, p. 357
Determining payroll tax withholding
1., 2.
1., 2.
$ 62.00 $ 63.24 $14.79
$52.00 $84.32 $19.72
79.00 60.76 14.21
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318 • Working Papers
© 2019 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12-3 WORK TOGETHER, p. 363
PAYROLL REGISTER
SEMIMONTHLY PERIOD ENDED DATE OF PAYMENT
12345678910
EMPL.
NO. EMPLOYEE’S NAME
MARI-
TAL
STATUS
NO. OF
ALLOW-
ANCES
EARNINGS DEDUCTIONS
NET PAY CHECK
NO.
REGULAR OVERTIME TOTAL FEDERAL
INCOME TAX
SOCIAL
SECURITY TAX
MEDICARE
TAX
HEALTH
INSURANCE
RETIREMENT
PLAN TOTAL
12Johnson, Edward P. M2 1 3 2 0 00 1 1 2 50 1 4 3 2 50 1
EARNINGS RECORD FOR QUARTER ENDED
WITHHOLDING
EMPLOYEE NO. MARITAL STATUS ALLOWANCES
LAST NAME FIRST MIDDLE
INITIAL
RATE OF PAY PER HOUR SOCIAL SECURITY NO. POSITION
1234567891011
PAY PERIOD EARNINGS DEDUCTIONS
NET PAY
ACCUMULATED
EARNINGS
NO. ENDED REGULAR OVERTIME TOTAL FEDERAL
SOCIAL
MEDICARE
HEALTH
RETIREMENT
Preparing payroll records
(Note: The payroll register and employee earnings record used in this problem are also used in Work Together 12-4.)
1., 2.
3.
TE
July 15, 20 —
September 30, 20 —
July 15, 20 —
2 Johnson
$15.00 954-15-1568 Sales Manager
Edward PM 2
6 1 00 8 8 82 2 0 77 6 0 00 1 5 00 2 4 5 59 1 1 8 6 91 261
17 2 1 8 00
12-4
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Chapter 12 Preparing Payroll Records • 319
Name Date Class
© 2019 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12-3 ON YOUR OWN, p. 363
PAYROLL REGISTER
SEMIMONTHLY PERIOD ENDED DATE OF PAYMENT
12345678910
EMPL.
NO. EMPLOYEE’S NAME
MARI-
TAL
STATUS
NO. OF
ALLOW-
ANCES
EARNINGS DEDUCTIONS
NET PAY CHECK
NO.
REGULAR OVERTIME TOTAL FEDERAL
INCOME TAX
SOCIAL
SECURITY TAX
MEDICARE
TAX
HEALTH
INSURANCE
RETIREMENT
PLAN TOTAL
13Patterson, James T. S2 1 6 0 1 60 5 4 60 1 6 5 6 20 1
26Reeves, Glenda R. M 3 1 5 8 4 00 9 4 50 1 6 7 8 50 2
EARNINGS RECORD FOR QUARTER ENDED
WITHHOLDING
EMPLOYEE NO. MARITAL STATUS ALLOWANCES
LAST NAME FIRST MIDDLE
INITIAL
RATE OF PAY PER HOUR SOCIAL SECURITY NO. POSITION
1234567891011
PAY PERIOD EARNINGS DEDUCTIONS
NET PAY
ACCUMULATED
EARNINGS
NO. ENDED REGULAR OVERTIME TOTAL FEDERAL
SOCIAL
MEDICARE
HEALTH
RETIREMENT
Preparing payroll records
(Note: The payroll register used in this problem is also used in On Your Own 12-4.)
1., 2.
3.
July 15, 20 —
September 30, 20 —
July 15, 20 —
3Patterson
$18.25 941-74-4818 Production Scheduler
James TS 2
1 5 5 00 1 0 2 68 2 4 01 7 5 00 3 0 00 3 8 6 69 1 2 6 9 51 148
7 4 00 1 0 4 07 2 4 34 7 5 00 3 0 00 3 0 7 41 1 3 7 1 09 149
19 1 5 0 00
12-4
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320 • Working Papers
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12-4 WORK TOGETHER, p. 368
Preparing payroll checks
(Note: The payroll register used in this problem was also used in Work Together 12-3.)
1.
JUDY’S FASHIONS DATE No. 895
PAYEE
ACCOUNT TITLE DESCRIPTION AMOUNT
TE
First Community Bank
7/15/20 – –
July 15, 20- – payroll $1,933.32
23148_ch12_hr_311-348.indd 320 1/18/18 1:28 AM
Name Date Class
12-4 WORK TOGETHER (continued)
2.
EMPLOYEE Edward P. Johnson DATE June 30, 20–
TYPE HOURS RATE GROSS PAY DEDUCTIONS CURRENT YTD
Federal Income Tax 43.00 522.00
Regular 84.00 15.00 1,260.00 Social Security Tax 80.91 1,067.52
Overtime 2.00 22.50 45.00 Medicare Tax 18.92 249.66
Health Insurance 60.00 720.00
Retirement 15.00 180.00
Current Total Earnings 1,305.00 Totals 217.83 2,739.18
YTD Total Earnings 17,218.00 Net Pay 1,087.17 14,478.82
EMPLOYEE DATE
TYPE HOURS RATE GROSS PAY DEDUCTIONS CURRENT YTD
Federal Income Tax
Regular 88.00 15.00 Social Security Tax
Overtime 5.00 22.50 Medicare Tax
Health Insurance
Retirement
Edward P. Johnson July 15, 20 – –
1,320.00
112.50
61.00 583.00
88.82 1,156.34
20.77 270.43
60.00 780.00
15.00 195.00
23148_ch12_hr_311-348.indd 321 1/18/18 1:28 AM
322 • Working Papers
© 2019 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
EMPLOYEE Janice E. Nelson DATE June 30, 20–
TYPE HOURS RATE GROSS PAY DEDUCTIONS CURRENT YTD
Federal Income Tax 79.00 892.00
Regular 82.00 11.50 943.00 Social Security Tax 61.67 736.10
Overtime 3.00 17.25 51.75 Medicare Tax 14.42 172.15
Health Insurance 60.00 720.00
Retirement 15.00 180.00
Current Total Earnings 994.75 Totals 230.09 2,700.25
YTD Total Earnings 11,872.50 Net Pay 764.66 9,172.25
12-4 WORK TOGETHER (concluded)
TE
23148_ch12_hr_311-348.indd 322 1/18/18 1:28 AM
Chapter 12 Preparing Payroll Records • 323
Name Date Class
© 2019 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12-4 ON YOUR OWN, p. 368
Preparing payroll checks
(Note: The payroll register used in this problem was also used in On Your Own 12-3.)
1.
RUSSELL COMPANY DATE No. 921
PAYEE
ACCOUNT TITLE DESCRIPTION AMOUNT
First American Bank
7/15/20 – –
July 15, 20- – payroll $2,640.60
23148_ch12_hr_311-348.indd 323 1/18/18 1:28 AM
324 • Working Papers
12-4 ON YOUR OWN (continued)
2.
EMPLOYEE James T. Patterson DATE June 30, 20–
TYPE HOURS RATE GROSS PAY DEDUCTIONS CURRENT YTD
Federal Income Tax 137.00 1,583.00
Regular 80.00 18.20 1,456.00 Social Security Tax 95.35 1,187.30
Overtime 3.00 27.30 81.90 Medicare Tax 22.30 277.68
Health Insurance 75.00 900.00
Retirement 30.00 360.00
Current Total Earnings 1,537.90 Totals 359.65 4,307.98
YTD Total Earnings 19,150.00 Net Pay 1,178.25 14,842.02
EMPLOYEE DATE
TYPE HOURS RATE GROSS PAY DEDUCTIONS CURRENT YTD
Federal Income Tax
Regular 88.00 18.20 Social Security Tax
Overtime 2.00 27.30 Medicare Tax
Health Insurance
Retirement
TE
1,601.60
54.60
155.00 1,738.00
102.68 1,289.98
24.01 301.69
75.00 975.00
30.00 390.00
James T. Patterson July 15, 20 – –
23148_ch12_hr_311-348.indd 324 1/18/18 1:28 AM
Name Date Class
EMPLOYEE Glenda R. Reeves DATE June 30, 20–
TYPE HOURS RATE GROSS PAY DEDUCTIONS CURRENT YTD
Federal Income Tax 44.00 408.00
Regular 80.00 18.00 1,440.00 Social Security Tax 90.95 836.32
Overtime 1.00 27.00 27.00 Medicare Tax 21.27 195.59
Health Insurance 75.00 675.00
Retirement 30.00 270.00
Current Total Earnings 1,467.00 Totals 261.22 2,384.91
YTD Total Earnings 13,489.00 Net Pay 1,205.78 11,104.09
12-4 ON YOUR OWN (concluded)
23148_ch12_hr_311-348.indd 325 1/18/18 1:28 AM
12-1 APPLICATION PROBLEM (LO1, 2), p. 371
Calculating total earnings
1.
EMPLOYEE NO. 7
NAME Marcus T. Groves
PAY PERIOD ENDED December 15, 20–
MORNING AFTERNOON EVENING HOURS
Day
IN OUT IN OUT IN OUT REG OT
Mon 01
558 1153 1259 354
Tue 02
856 1201 1253 556 653 953
Wed 03
100 602 755 955
Thu 04
1254 556 653 1006
Fri 05
1254 558
Sat 06
904 1156 1256 556 628 926
604 1202 1259 354
2. Employee
Number
Hours Worked Regular
Rate
Earnings Total
EarningsRegular Overtime Regular Overtime
2 80 12 $15.00
8 1.0
8 3.0
7
8
5
4 7.0
8 1.0
$1,200.00 $270.00 $1,470.00
Chapter 12 Preparing Payroll Records • 327
Name Date Class
© 2019 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12-2 APPLICATION PROBLEM (LO3, 4), p. 371
Employee Marital
Status
Number of
Withholding
Allowances
Total
Earnings
Federal Income
Tax
Withholding
Social Security
Tax
Withholding
Medicare
WithholdingNo. Name
1 Kelly, Sandra P. S 3 $1,485.00
9 Miller, Kelly T. M 2 1,621.00
5Cleveland, Patti A. S 1 1,595.00
2 Maxwell, Jon T. M 4 1,348.00
1., 2.
Determining payroll tax withholding
$108.00 $ 92.07 $21.53
91.00 100.50 23.50
169.00 98.89 23.13
17.00 83.58 19.55
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328 • Working Papers
© 2019 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
PAYROLL REGISTER
SEMIMONTHLY PERIOD ENDED DATE OF PAYMENT
12345678910
EMPL.
NO. EMPLOYEE’S NAME
MARI-
TAL
STATUS
NO. OF
ALLOW-
ANCES
EARNINGS DEDUCTIONS
NET PAY CHECK
NO.
REGULAR OVERTIME TOTAL FEDERAL
INCOME TAX
SOCIAL
SECURITY TAX
MEDICARE
TAX
HEALTH
INSURANCE
RETIREMENT
PLAN TOTAL
19Gamble, Ed P. S1 1 3 4 2 00 1 3 4 2 00 4 5 00 1 0 00 395 1
27Holtz, Thomas E. M 2 1 0 5 8 00 4 8 50 1 1 0 6 50 6 0 00 2 5 00 396 2
36Jones, Virginia W. S 4 1 0 7 4 00 8 4 00 1 1 5 8 00 9 0 00 2 0 00 397 3
48Lowe, Mary C. M 2 1 4 8 6 00 1 0 8 00 1 5 9 4 00 6 0 00 5 0 00 398 4
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
Preparing payroll records
1.
12-3 APPLICATION PROBLEM (LO6, 7), p. 372
TE
Sept. 30, 20 – –
Sept. 30, 20 —
1 3 3 00 8 3 20 1 9 46 2 9 0 66 1 0 5 1 34
2 3 00 6 8 60 1 6 04 1 9 2 64 9 1 3 86
3 4 00 7 1 80 1 6 79 2 3 2 59 9 2 5 41
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Chapter 12 Preparing Payroll Records • 329
Name Date Class
© 2019 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12-3 APPLICATION PROBLEM (concluded)
EARNINGS RECORD FOR QUARTER ENDED
WITHHOLDING
EMPLOYEE NO. MARITAL STATUS ALLOWANCES
LAST NAME FIRST MIDDLE
INITIAL
RATE OF PAY PER HOUR SOCIAL SECURITY NO. POSITION
1234567891011
PAY PERIOD EARNINGS DEDUCTIONS
NET PAY
ACCUMULATED
EARNINGS
NO. ENDED REGULAR OVERTIME TOTAL FEDERAL
INCOME TAX
SOCIAL
SECURITY TAX
MEDICARE
TAX
HEALTH
INSURANCE
RETIREMENT
PLAN TOTAL 20 6 4 0 00
17/15 1 7 6 0 00 6 0 00 1 8 2 0 00 1 2 1 00 1 1 2 84 2 6 39 6 0 00 3 0 00 3 5 0 23 1 4 6 9 77 22 4 6 0 00
27/31 1 6 0 0 00 9 0 00 1 6 9 0 00 1 0 0 00 1 0 4 78 2 4 51 6 0 00 3 0 00 3 1 9 29 1 3 7 0 71 24 1 5 0 00
38/15 1 5 4 0 00 7 5 00 1 6 1 5 00 8 8 00 1 0 0 13 2 3 42 6 0 00 3 0 00 3 0 1 55 1 3 1 3 45 25 7 6 5 00
2., 3.
September 30, 20 —
2
A.
Mary
Terrell
2M
Purchasing Manager
947-15-4487
$20.00
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