Analyzing and Journalizing Payroll Transactions:
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1. The payroll entry for each pay period is recorded in the general journal or combination journal of the business.
2. Gross earnings and net pay are the same amounts.
3. A summary of all earnings, deductions, and net pay for all employees can be found in the payroll register of the business.
4. A complete earnings record system for a business requires only the preparation of the payroll register.
5. Net pay of the employee totals 400. If total deductions from gross earnings total 120, the gross earnings for the period will total 280.
6. When SUTA taxes are paid, the Payroll Tax Expense account is debited.
7. When a Form 8109 is filed, the journal entry for this transaction will debit the Payroll Taxes Expense account.
8. The gross earnings of the employee is 550. If the employee has withholdings of federal, state, and FICA taxes totaling 150, a credit union payment of 60, and medical and life insurance premiums of 35, the employee's net pay will be:
9. The net pay of the employee totals 610. If employee deductions for taxes total 125, and insurance, union dues, and credit union deductions total 145, the gross earnings of the employee will be:
10. Gross earnings total 4,000 and net pay is 3,000. Federal tax deductions are 248 for Social Security taxes, 58 for Medicare taxes, and 620 for Federal Income taxes. The journal entry in the payroll register will require multiple credits and must include a credit to:
a.Salaries Payable for 4,000
b.Salaries Payable for 1,000
c.Cash for 3,174
d.Cash for 800
e.none of the above
11. The total earnings-to-date information for each employee will be found in the:
a.cash payments journal
c.employee's earnings record
d.number 2 and 3 above
e.all of the above
12. Which of the following items may not be a cost to employ a person?
a.Social Security tax
13. An employer has journalized the payroll tax obligations for a weekly payroll. Four different taxes are credited as payables. The other part of the entry will be a debit to:
b.Cash and Prepaid Payroll Taxes
c.Payroll Taxes Expense
d.Payroll Taxes Payable
e.none of the above
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