Reference no: EM132771910

Questions -

Question 1 - At the end of December, George owed $7,000 in salaries to employees. Employees are required to pay $535 in FICA taxes. Employees also elected to invest 3% of their gross pay in their 401(k) plans and 2% of their gross salaries in qualified medical plans. The employees do not have to make estimated federal or state payments. What entry does George need to make on Dec. 31?

(a) Credit Salary Expense $7,000

(b) Debit Salaries Payable $6,115

(c) Debit Salary Expense $7,000

(d) Credit Salaries Payable $7,000

Question 2 - At the end of December, George owed $7,000 in salaries to employees. Employees are required to pay $535 in FICA taxes. Employees also elected to invest 3% of their gross pay in their 401(k) plans and 2% of their gross salaries in qualified medical plans. What entry does George need to make on Dec. 31?

(a) Debit Payroll Tax Exp. 535, Credit Cash 535

(b) Debit FICA Payable 535, Credit Cash 535

(c) Debit FICA Payable 535, Credit Payroll Tax. Exp. 535

(d) Debit Payroll Tax Exp. 535, Credit FICA Payable 535

Question 3 - George Bailey's Sales Account total is $5,281.50, which includes sales and sales tax George is required to remit to the state. The state sales tax rate is 6.5%. What is the amount of sales tax included in the Sales Account?

(a) $322.35

(b) $343.30

(c) $4,960

Question 4 - An adjusting entry to record an accrued expense will often require adjusting a:

(a) Asset account

(b) Liability account

(c) Revenue account

(d) Stockholders' Equity account

Question 5 - Bedford Falls Savings and Loan agrees to lend the Mr. Potter $1,000 on April 1. The loan is a 3 month note that requires Mr. potter to pay 4% interest. Provide the following journal entries Mr. Potter makes on his books:

Journal Entry on April 1st to record the note.

(a) Debit Cash 1,000; Credit N/P 1,000

(b) Debit N/P 1,000, Credit Cash 1,000