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Study Resources (Accounting)

8.1   Learning Objective 8-1 1) Prepaid Worker's Compensation Insurance is what type of account? A) Asset B) Expense C) Liability D) Revenue 2) What type of an account is Wages and Salaries Payable? A) Asset B) Liability C) Revenue D) Expense 3) The Wages and Salaries Expense account would be used to record: A) net earnings for the office workers. B) a credit.
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9.1   Learning Objective 9-1 1) Merchants who buy goods from wholesalers for resale to customers are: A) merchandisers. B) retailers. C) service companies. D) None of the above are correct. 2) Merchandise is: A) the same as inventory. B) an asset. C) the same as gross sales. D) Both A and B are correct. 3) Gross sales equals: A) net sales minus.
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16) Grammy's Bakery had the following information for the pay period ending June 30: Employee Name Pay rate Hours worked Cumulative earnings Department Federal income tax withheld P. Ganster $ 2,000 Salaried $ 12,000 Kitchen $ 86.00 T. Baker 10.00/hr 50 6,500 Office 22.00 Assume: FICA-OASDI applied to the first $106,800 at a rate of 6.2%. FICA-Medicare applied at a rate of 1.45%. FUTA applied to the first $7,000.
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31) Purchases: A) decrease net income. B) increase net income. C) have no effect on net income. D) Not enough information provided. 32) Purchases discounts: A) decrease net income. B) increase net income. C) have no effect on net income. D) Not enough information provided. 33) Purchases Returns and Allowances: A) decrease net income. B) increase net income. C) have no effect on.
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7.3   Learning Objective 7-3 1) Which tax does not have a wage base limit? A) State unemployment tax B) Federal unemployment tax C) FICA-Medicare D) FICA-OASDI 2) The payroll register: A) is a worksheet. B) shows all employee information related to an entire pay period. C) keeps track of an individual employee's payroll history for a calendar year. D) Both.
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51) All employees must contribute to Federal and State income tax. 52) When an employee's earnings are greater than FICA base limit during the calendar year, no more FICA-OASDI tax is deducted from earnings. 53) To have less money withheld from your paycheck, an employee can claim more allowances than they actually.
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30) Prepare a general journal payroll entry for Advanced Computer Programming using the following information: Cumulative EarningsWeekly Before PayrollSalaryDepartment C. Lester$60,000$1,000Office C. Oros90,0001,600Sales J. Carnarvon165,0002,100Office Assume the following: a) FICA: OASDI, 6.2% on a limit of $106,800; Medicare, 1.45% b) Federal income tax is 15% of gross pay c) Each employee pays $20 per week for medical insurance 31) Payroll.
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41) From the following information, prepare the bank reconciliation for Paul's Photography Studio for June. Ending checkbook balance$90 Ending bank statement balance30 Deposits in transit90 Outstanding checks40 Service Charge10 42) Construct the bank reconciliation for Mitter Company as of July 31, from the following information: a. Balance per bank statement$9,150 b. Deposit in transit705 c. Checkbook balance9,250 d. Outstanding checks800 e..
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10.1   Learning Objective 10-1 1) Net purchases are: A) Purchases + Purchases Returns and Allowances. B) Purchases - Purchases Discount - Purchases Returns and Allowances. C) Purchases - Freight - Purchases Returns and Allowances. D) Purchases + Freight-in. 2) If a display rack was purchased for the store, which of the following accounts would be increased? A).
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Learning Outcome:  Analyze and record transactions and their effects on the financial statements Kristi's Mentoring had the following information for the pay period ending September 30: Employee NamePay Hours Cumulative Department Federal income rateworkedearningstax withheld T. Hill$4,500Salaried$103,000Office$ 2,000.00 V. Chandler12.004851,000Tutor215.00 M. Hill13.00435,200Tutor208.00 Assume: FICA-OASDI applied to the first $106,800 at a rate of 6.2% FICA-Medicare applied at a rate.
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9.2   Learning Objective 9-2 1) If a credit memorandum is issued, what account will be increased on the seller's books? A) Accounts Receivable B) Accounts Payable C) Sales Discount D) Sales Returns and Allowances 2) If a credit memorandum is issued, what account will be decreased on the seller's books? A) Accounts Receivable B) Accounts Payable C) Sales Discount D).
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8.5   Learning Objective 8-5 1) The employer's annual Federal Unemployment Tax Return is: A) Form 940. B) Form 941. C) Form W-4. D) Form 8109. 2) How often is a 940 filed? A) Monthly B) Annually C) Weekly D) Quarterly 3) Which of the following does not apply to both a W-2 and W-3? A) Reports the total amount of wages, tips.
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11) There are two parts to FICA: A) old age benefits and workers' compensation. B) retirement and income tax withholdings. C) OASDI and Medicare. D) All of these answers are correct. 12) FICA taxes provide funding to the government to pay: A) monthly retirement benefits for persons over age 62. B) medical benefits for persons over age.
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10.2   Learning Objective 10-2 1) On February 12, Clare purchased $400 of merchandise on account from Larsen's Accessories, terms 2/10, n/30. The goods were shipped F.O.B. destination. The freight charge was $40. The amount to be recorded in the Accounts Payable Subsidiary ledger is: A) $392. B) $408. C) $400. D) $440. 2) An entry to.
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8.4   Learning Objective 8-4 1) Which taxes are considered 941 taxes? A) FICA, FUTA, and SUTA B) FICA and SIT C) FICA and FIT D) None of these answers are correct. 2) Form 941 is filed: A) monthly. B) annually. C) weekly. D) quarterly. 3) Which form is used to report FICA taxes for the employer and employee, and also federal.
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41) When the terms are F.O.B. shipping point, the buyer is responsible for the cost of shipping from the seller's shipping point to the purchaser's location but the title does not pass until it is delivered. 42) Purchases Discounts are not taken on freight costs. 43) The Purchases Returns and Allowances account.
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41) Employer Employee Worker's compensation 42) Employer Employee Union Dues 43) The employees collectively earn a gross wage of $90,000 for the pay period. But the employer says that they cost $97,000. Discuss the discrepancy. 44) What is required of an employer by the Federal Insurance Contributions Act? 45) Compute the net pay for each employee. The FICA.
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9.5   Learning Objective 9-5 1) The following are transactions for Brian for the month of October. Indicate how the following transactions would be recorded by completing the necessary journal entries as appropriate (omit explanations). Oct.1Brian invested $15,000 in his business. Oct.3Sold $2,500 of merchandise on account to H. Holand, sales invoice No. 1,.
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The Dairy Co. had the following transactions involving the sale of merchandise. You are to prepare the necessary general journal entries. All sales are subject to a 6% sales tax. April 13Sold merchandise priced at $500 to Jan Ellsworth on account. April 14Sold merchandise priced at $350 to a cash customer. April 15Sold.
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The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 1/2) Employee NamePay RateHours Cumulative Department Federal Income WorkedTax Withheld B. Woodard$2,000/wkSalaried$ 98,000Office$ 779.00 J. Thomas13.005140,000Shop320.00 K. McCann17.004642,000Shop330.00 Assume: FICA-OASDI is 6.2% based on a limit of $106,800 FICA-Medicare is 1.45% FUTA is .8% based on a limit of.
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7.2   Learning Objective 7-2 1) An employee has gross earnings of $1,000 with withholdings of 6.2% FICA-OASDI, 1.45 % FICA-Medicare, $50 for federal income tax and $10 for state income tax. How much is the gross pay? A) $1000.00 B) $781.15 C) $771.15 D) $791.15 2) An employee has gross earnings of $1,000 with withholdings of.
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6.4   Learning Objective 6-4 1) A company would use a change fund if: A) there are cash transactions daily. B) they want to pay the postage expense without writing a check. C) the owner wants to make personal withdrawals easily. D) None of these are correct. 2) The change fund is what type of account? A) Expense B).
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35) Prepare the necessary general journal entry for April 25. ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ 36) Prepare the necessary general journal entry for April 30. ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ 37) Prepare the necessary general journal entry for December 2. ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ 38) Prepare the necessary general journal entry for December 4. ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ 39) Prepare the necessary general journal entry for December 10. ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ 40) Prepare the necessary general.
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51) When a customer returns defective office supplies the Sales Returns and Allowances account will be debited. 52) Use the following information to answer the questions below: Sales$75,400 Sales Discount1,500 Sales Returns and Allowances900 Transportation Expense700 The Net Sales are ________. 53) Compare and discuss a discount period versus a credit period. 54) Determine the amount of net.
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11) Net sales equal: A) gross sales. B) gross sales - sales returns and allowances. C) gross sales - sales returns and allowances - sales discounts. D) sales discounts. 12) Sales Tax Payable is a: A) liability account with a debit balance. B) liability account with a credit balance. C) contra-asset account with a debit balance. D) contra-asset account.
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31) The premium rate for workers' compensation is based on the type of work performed. 32) The employer's payroll taxes are deducted from the employee's paycheck. 33) FUTA and SUTA are paid for exclusively by the employee. Given the following payroll items you are to identify whether they are the expense of the.
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32) Prepare the general journal entry to record the payroll. ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ 33) Prepare the general journal entry to record the employer's payroll tax expense. ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ 34).
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16) Accounts in the accounts receivable subsidiary ledger are listed in order of how much is owed. 17) The balance in the Accounts Receivable account is $2,200 debit. Therefore, the balances in the subsidiary ledger should be $2,200. 18) The controlling account is found in the subsidiary ledger and it summarizes or.
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61) From the following information, complete the chart for gross earnings for the week. Assume an overtime rate of time and a half over 40 hours. Hourly RateNo. of HoursGross Earnings Worked Kurt Nelson$1441________ Sabrina Schmitz$1639________ Kirk Seifker$1843________ 62) List the purposes of Federal Insurance Contributions Act. 63) What is the purpose of the Fair Labor Standards.
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8.3   Learning Objective 8-3 1) The tax paid by the employer for both the employee and employer: A) must be deposited in an authorized depository. B) must be deposited directly in the company's checking account. C) can be paid when the company is determined to have excess cash. D) None of these answers are correct. 2).
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6.3   Learning Objective 6-3 1) What type of an account is the petty cash fund? A) Revenue B) Expense C) Asset D) Liability 2) A petty cash fund is set up: A) to pay for large expenses. B) to pay for small expenses. C) for the owner to withdraw money for personal use conveniently. D) None of these answers are.
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9.4   Learning Objective 9-4 1) A record showing the activity and the balances owed by each customer is called the: A) general ledger. B) sales journal. C) cash receipts journal. D) accounts receivable subsidiary ledger. 2) Accounts of a single type are kept in this ledger: A) supplemental ledger. B) additional ledger. C) subsidiary ledger. D) None of these answers.
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16) Which of the following transactions would be recorded in an auxiliary petty cash record? A) Purchase of first aid supplies B) Payment of Salaries Expense C) Owner Withdrawal D) Purchase of a $2,000 piece of Equipment 17) Which of the following transactions would most likely not be recorded in an auxiliary petty cash record? A).
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8.2   Learning Objective 8-2 1) What liability account is reduced when the employees are paid? A) Payroll Taxes Payable B) Federal Income Taxes Payable C) Wages and Salaries Payable D) Wages and Salaries Expense 2) If Wages and Salaries Payable is debited, what account would most likely be credited? A) Cash B) Wages and Salaries Expense C) Payroll Expense D).
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7.1   Learning Objective 7-1 1) A pay period is defined as: A) weekly. B) bi-weekly. C) monthly. D) All of the above are correct. 2) Gross Earnings are the same as: A) regular earnings only. B) regular earnings + overtime earnings. C) net earnings. D) net earnings + overtime earnings. 3) Under the Fair Labor Standards Act, for any hours that.
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16) Premiums for worker's compensation insurance may be adjusted based on actual payroll amounts at the end of the year. 17) S. Ferrari, an employee of Plum Hollow Country Club, earned $1,100 during the first week of January. His withholding included: federal income tax, 15%; state income tax, 5%; FICA-OASDI, 6.2%;.
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11) Workers' compensation: A) insures employees against losses they may incur due to injury or death while on the job. B) is based on the total estimated payroll. C) is paid for by the employer. D) All of the above are correct. 12) Most employers are levied a payroll tax for: A) state and federal income.
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