Current Liabilities and Payroll Accounting

According to the textbook, which of the following best defines a current liability?

First National Bank agrees to lend Cole Williams Co. $100,000 on September 1, 2017, by having them sign a 12 percent, four-month note. What is the adjusting entry Cole Williams Co. must make on December 31, 2017?

Cooley Grocery's cash register total for March 25 is $10,600, which includes a 6 percent sales tax. How should the journal entry to record daily sales and sales taxes be recorded?

Superior University sells 10,000 season football tickets at $50 each for its five-game home schedule. What is the entry to recognize revenue after the first game is played?

Wendy Construction issues a five-year, interest-bearing $25,000 note on January 1, 2016. The note specifies that each January 1, starting January 1, 2017, Wendy should pay $5,000 of the note. How should this debt be reported on the December 31, 2016 balance sheet?

What is the term for a potential liability that may become an actual liability in the future, depending on the outcome of a future event?

Under what circumstances should a contingent liability be recorded in the accounts?

In 2017, Denson Manufacturing sells 10,000 units with a one-year warranty. Denson expects 5 percent of the units to be defective and warranty costs to average $80 per unit. What is the adjusting entry to accrue warranty costs at December 31, 2017?

If a company has current assets of $504,000 and total current liabilities of $400,000, what is its working capital?

What are the three components involved in determining payroll?

Michael Jordan worked 44 hours in a week for Academy Company at a regular wage of $12 per hour. The company pays one-and-a-half times the regular rate for hours worked in excess of 40. What are Jordan's gross earnings for the week?

Which of the following are mandatory payroll deductions required by law?

If Mario Ruez has total wages of $124,000 for the year, and the FICA tax rate is 6.2 percent for Social Security up to $117,000 and 1.45 percent for Medicare on all wages, what is his total FICA tax contribution?

Which of the following is an employer payroll tax?

Academy Company's gross payroll for the week ending January 14 is $17,210. What is the journal entry to record this payroll?

What is the primary purpose of the Wage and Tax Statement (Form W-2)?

Which of the four functions of payroll activities should be assigned to different departments or individuals for effective internal control?

If 30 employees of Academy Company earn an average of $110 per day, what is the monthly accrual for vacation benefits, assuming they earn one day's vacation for each month worked?

What is the key difference between a defined-contribution pension plan and a defined-benefit pension plan?

If a company has a contingent liability that is 'reasonably possible', how should it be reported in the financial statements?

A retailer's cash register shows total receipts of $25,680, which includes a 7 percent sales tax. What is the amount of Sales Taxes Payable?

Which of the following describes the payment of a liability for accrued vacation benefits?

If a company’s current assets are $350,000 and its current liabilities are $202,000, what is its current ratio?

Which of these is NOT a tax levied on employers?

In the journal entry to record employer payroll taxes for Academy Company's January 14 payroll, what amount is credited to State Unemployment Taxes Payable?

If a company borrows $60,000 on July 1 by signing a 10 percent, one-year note, what is the adjusting entry on December 31?

What is the payroll record that accumulates the gross earnings, deductions, and net pay by employee for each pay period?

Federal Unemployment Tax Act (FUTA) taxes are paid by which party?

In a defined-contribution pension plan, what is specified by the plan?

If Erin Berge worked 42 hours in a week at a regular rate of $18 per hour (with overtime at 1.5 times the regular rate), what are her gross earnings?

What does liquidity refer to?

If a company's gross payroll is $80,000 and it is subject to a 5.4 percent state unemployment tax and a 0.8 percent federal unemployment tax, what is the total employer unemployment tax expense?

What is the federal law enacted to curb abuses in the administration and funding of pension plans?

When a company collects sales tax from a customer, how is the sales tax amount recorded?

The term 'payroll' as used in accounting pertains to payments made to which group?

Historically, what was considered the standard for a good current ratio?

What is the net federal unemployment tax rate after applying the maximum offset credit?

The journal entry to record employer payroll tax expense typically includes a credit to all of the following accounts EXCEPT:

When a company remits collected sales taxes to the taxing agency, what is the journal entry?

Which of the following is an example of a voluntary payroll deduction?

If a company has a lawsuit liability that is probable but the amount cannot be reasonably estimated, how should it be treated?

For the weekly payroll of Michael Jordan shown in Illustration 11-12, what is his net pay?

What is the federal tax that provides benefits for employees who lose their jobs through no fault of their own?

In the journal entry to record employer payroll tax expense, the total amount is debited to:

Ordinarily, which is the only type of paid absence that is accrued by companies?

If a company has working capital of $104,000 and a current ratio of 1.26:1, what are its total current liabilities?

What are the three parties involved in a pension plan?

If a company has a lawsuit liability that is deemed 'remote', what is the appropriate accounting treatment?

The wage base limit of $117,000 for FICA taxes applies to which component?

Which internal control function is primarily responsible for preparing hiring authorization forms for new hires?