Question 1

The difference between the amount borrowed and the amount repaid is referred to as _______________.

Accepted Answer

The answer of The difference between the amount borrowed and...

Question 2

What are estimated liabilities?
 Cite at least two examples and explain why they are classified as estimated liabilities.

Accepted Answer

Estimated liabilities are known obligati...

Question 3

On March 17,Grady Company agrees to accept a 60-day,10%,$4,500 note from Alert Company to extend the due date on an overdue account.What is the journal entry needed to record the payment of the note by Alert Company on the maturity date?

Accepted Answer

A)  Debit Notes Payable $4,500; debit Interest Expense $75; credit Cash $4,575.
B)  Debit Notes Payable $4,500; credit Interest Expense $75, credit Cash $4,425.
C)  Debit Cash $4,575; credit Interest Revenue $75; credit Notes Payable $4,500.
D)  Debit Notes Payable $4,500; debit Interest Expense $112; credit Cash $4,612.
E)  Debit Cash $4,575; credit Interest Revenue $75; credit Notes Receivable $4,500.F) B) and C)
G) A) and D)

Question 4

The full disclosure principle requires the reporting of contingent liabilities that are reasonably possible.

Accepted Answer

A) True 
 B)False

Question 5

On March 17,Grady Company agrees to accept a 60-day,10%,$4,500 note from Alert Company to extend the due date on an overdue account.What is the journal entry needed to record the transaction by Alert Company?

Accepted Answer

A)  Debit Notes Payable $4,500; credit Accounts Payable $4,500.
B)  Debit Accounts Payable $4,500; credit Notes Payable $4,500.
C)  Debit Accounts Receivable $4,500; credit Notes Payable $4,500.
D)  Debit Cash $4,500; credit Notes Payable $4,500.
E)  Debit Sales $4,500; credit Notes Payable $4,500.F) A) and B)
G) B) and E)

Question 6

Employee vacation benefits:

Accepted Answer

A)  Are estimated liabilities.
B)  Are contingent liabilities.
C)  Are recorded as an expense when the employee takes a vacation.
D)  Are recorded as an expense when the employee retires.
E)  Increase net income.F) B) and C)
G) A) and E)

Question 7

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:

Accepted Answer

A)  Debit Warranty Expense $7,400; credit Sales $7,400.
B)  Debit Warranty Expense $7,400; credit Estimated Warranty Liability $7,400.
C)  Debit Estimated Warranty Liability $7,400; credit Warranty Expense $7,400
D)  Debit Estimated Warranty Liability $7,400; credit Cash $7,400.
E)  No entry is recorded until the items are returned for warranty repairs.F) A) and E)
G) A) and B)

Question 8

The employer should record payroll deductions as:

Accepted Answer

A)  Employee receivables.
B)  Payroll taxes.
C)  Current liabilities.
D)  Wages payable.
E)  Employee payables.F) B) and C)
G) A) and E)

Question 9

Phil Phoenix is paid monthly.For the month of January of the current year,he earned a total of $8,288.The FICA tax for social security is 6.2% and the FICA tax rate for Medicare is 1.45%.The FUTA tax rate is 0.8%,and the SUTA tax rate is 5.4%.Both unemployment taxes are applied to the first $7,000 of an employee's pay.The amount of federal income tax withheld from his earnings was $1,375.17.His net pay for the month is:

Accepted Answer

A)  $5,190.83
B)  $5,844.79
C)  $6,278.79
D)  $6,566.00
E)  $6,792.64F) A) and C)
G) B) and C)

Question 10

Identify and discuss the factors involved in computing federal income taxes for employees.

Accepted Answer

The amount of federal income tax withhel...

Question 11

On September 15,SportsWorld borrowed $75,000 cash from FirstBank by signing a 12%,60-day note payable.
a.Prepare SportsWorld's journal entry to record the issuance of the note payable.
b.Prepare SportsWorld's journal entry to record the payment of the note at maturity.

Accepted Answer

a. 9/15 Cash………………………………….. 75...

Question 12

What are known current liabilities?
 Cite at least two examples of known current liabilities.

Accepted Answer

Known current liabilities are obligation...

Question 13

Sales taxes payable:

Accepted Answer

A)  Is an estimated liability.
B)  Is a contingent liability.
C)  Is a current liability for retailers.
D)  Is a business expense.
E)  Is a long-term liability.F) B) and C)
G) All of the above

Question 14

Vacation benefits are a type of _______________ liability.

Accepted Answer

The answer of Vacation benefits are a type of _______________...

Exam 11: Current Liabilities and Payroll Accounting

Sales taxes payable:

Correct Answer
verified

On September 15,SportsWorld borrowed $75,000 cash from FirstBank by signing a 12%,60-day note payable. a.Prepare SportsWorld's journal entry to record the issuance of the note payable. b.Prepare SportsWorld's journal entry to record the payment of the note at maturity.

Correct Answer
verified
a. 9/15 Cash………………………………….. 75...
View Answer

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:

Correct Answer
verified

On March 17,Grady Company agrees to accept a 60-day,10%,$4,500 note from Alert Company to extend the due date on an overdue account.What is the journal entry needed to record the transaction by Alert Company?

Correct Answer
verified

What are estimated liabilities? Cite at least two examples and explain why they are classified as estimated liabilities.

Correct Answer
verified
Estimated liabilities are known obligati...
View Answer

The full disclosure principle requires the reporting of contingent liabilities that are reasonably possible.

Correct Answer
verified

On March 17,Grady Company agrees to accept a 60-day,10%,$4,500 note from Alert Company to extend the due date on an overdue account.What is the journal entry needed to record the payment of the note by Alert Company on the maturity date?

Correct Answer
verified

Correct Answer
verified

The employer should record payroll deductions as:

Correct Answer
verified

The difference between the amount borrowed and the amount repaid is referred to as _______________.

Correct Answer
verified

What are known current liabilities? Cite at least two examples of known current liabilities.

Correct Answer
verified
Known current liabilities are obligation...
View Answer

Identify and discuss the factors involved in computing federal income taxes for employees.

Correct Answer
verified
The amount of federal income tax withhel...
View Answer

Employee vacation benefits:

Correct Answer
verified

Vacation benefits are a type of _______________ liability.

Correct Answer
verified

Exam 11: Current Liabilities and Payroll Accounting

Sales taxes payable:

Correct AnswerverifiedShow Answer

On September 15,SportsWorld borrowed $75,000 cash from FirstBank by signing a 12%,60-day note payable. a.Prepare SportsWorld's journal entry to record the issuance of the note payable. b.Prepare SportsWorld's journal entry to record the payment of the note at maturity.

Correct Answerverifieda. 9/15 Cash………………………………….. 75...View AnswerShow Answer

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:

Correct AnswerverifiedShow Answer

On March 17,Grady Company agrees to accept a 60-day,10%,$4,500 note from Alert Company to extend the due date on an overdue account.What is the journal entry needed to record the transaction by Alert Company?

Correct AnswerverifiedShow Answer

What are estimated liabilities? Cite at least two examples and explain why they are classified as estimated liabilities.

Correct AnswerverifiedEstimated liabilities are known obligati...View AnswerShow Answer

The full disclosure principle requires the reporting of contingent liabilities that are reasonably possible.

Correct AnswerverifiedShow Answer

On March 17,Grady Company agrees to accept a 60-day,10%,$4,500 note from Alert Company to extend the due date on an overdue account.What is the journal entry needed to record the payment of the note by Alert Company on the maturity date?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The employer should record payroll deductions as:

Correct AnswerverifiedShow Answer

The difference between the amount borrowed and the amount repaid is referred to as _______________.

Correct AnswerverifiedShow Answer

What are known current liabilities? Cite at least two examples of known current liabilities.

Correct AnswerverifiedKnown current liabilities are obligation...View AnswerShow Answer

Identify and discuss the factors involved in computing federal income taxes for employees.

Correct AnswerverifiedThe amount of federal income tax withhel...View AnswerShow Answer

Employee vacation benefits:

Correct AnswerverifiedShow Answer

Vacation benefits are a type of _______________ liability.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
a. 9/15 Cash………………………………….. 75...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Estimated liabilities are known obligati...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Known current liabilities are obligation...
View Answer

Correct Answer
verified
The amount of federal income tax withhel...
View Answer

Correct Answer
verified

Correct Answer
verified