ACC 206 Week 3 Quiz Chapter 11 -
Multiple Choice Question 133
FICA Taxes Payable was credited for $27,000 in the entry when Highlands Company recorded payroll. When Highlands Company records employer's payroll taxes, FICA Taxes Payable should be credited for:
- some other amount.
Multiple Choice Question 92
Dailey Company does not ring up sales taxes separately on the cash register. Total receipts for February amounted to $48,150. If the sales tax rate is 7%, what amount must be remitted to the state for February's sales taxes?
Multiple Choice Question 64
On September 1, Bud's Painting Service borrows $150,000 from Highlands Bank on a 4-month, $150,000, 6% note. What entry must Bud's Painting Service make on December 31 before financial statements are prepared?
Interest Expense 3,000
Interest Payable 9,000
Interest Payable 3,000
Notes Payable 3,000
Multiple Choice Question 111
Lulzbot.com sells 6,000 units of its product for $500 each. The selling price includes a one-year warranty on parts. It is expected that 3% of the units will be defective and that repair costs will average $50 per unit. In the year of sale, warranty contracts are honored on 120 units for a total cost of $6,000. What amount should Lulzbot.com accrue on December 31 for estimated warranty costs?
Multiple Choice Question 131
Smita Quinn, earns $30 per hour for a 40 hour work week and $45 per hour for overtime work. If Smita works 44 hours, her gross earnings are:
Multiple Choice Question 56
When an interest-bearing note matures, the balance in the Notes Payable account is
- the difference between the maturity value of the note and the face value of the note.
- equal to the total amount repaid by the borrower.
- less than the total amount repaid by the borrower.
- greater than the total amount repaid by the borrower.
Multiple Choice Question 142
The effective federal unemployment tax rate is usually
Multiple Choice Question 93
Any balance in an unearned revenue account is reported as a (n)
- long-term debt.
- unearned liability.
Multiple Choice Question 108
A contingency that is remote
- does not need to be disclosed.
- is recorded as a contingent liability.
- should be disclosed in the financial statements.
- must be accrued as a loss.
Multiple Choice Question 125
The journal entry to record the payroll for a period will include a credit to Salaries and Wages Payable for the gross
- pay less taxes payable.
- pay less voluntary deductions.
- amount less all payroll deductions.
- amount of all paychecks issued.