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Exam 11: Current Liabilities and Payroll Accounting

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Question 61

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English Company billed its customers a total of $1,575,000 for the month of November. The total includes a 5% state sales tax. Instructions (a) Determine the proper amount of revenue to report for the month. (b) Prepare the general journal entry to record the revenue and related liabilities for the month.

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(a) $1,575,000 ÷ 1.05 = $1,500...

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Question 62

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Identify which of the following would be classified as current liabilities as of December 31, 2010: 1. Wages Payable 2. Bonds Payable, maturing in 2015 3. Interest Payable, due July 1, 2011 4. Taxes Payable 5. Notes Payable, due January 30, 2012

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Current liabilities ...

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Question 63

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Metropolitan Symphony sells 200 season tickets for $60,000 that represents a five concert season. The amount of Unearned Ticket Revenue after the second concert is $24,000.

On September 1, Joe's Painting Service borrows $50,000 from National Bank on a 4-month, $50,000, 6% note. The entry by Joe's Painting Service to record payment of the note and accrued interest on January 1 is

Any balance in an unearned revenue account is reported as a(n)

With an interest-bearing note, the amount of cash received upon issuance of the note generally exceeds the note's face value.

If a liability is dependent on a future event, it is called a

FICA taxes are a voluntary deduction from employee earnings.

A contingent liability is recorded when the likelihood of the contingency is

The journal entry to record the payroll for a period will include a credit to Wages and Salaries Payable for the gross

On October 1, 2010, Pennington Company issued a $40,000, 10%, nine-month interest-bearing note. If the Pennington Company is preparing financial statements at December 31, 2010, the adjusting entry for accrued interest will include a:

A current liability is a debt the company reasonably expects to pay from existing current assets within

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

The employer incurs a payroll tax expense equal to the amount contributed by each employee for ______________ taxes.

A current liability is a debt that can reasonably be expected to be paid

The amount of sales tax collected by a retail store when making sales is

On August 1, 2010, a company borrowed cash and signed a one-year interest-bearing note on which both the face value and interest are payable on August 1, 2011. How will the note payable and the related interest be classified in the December 31, 2010, balance sheet?

Most companies pay current liabilities

If a contingent liability is reasonably estimable and it is reasonably possible that the contingency will occur, the contingent liability

Ann Ellis's regular rate of pay is $12 per hour with one and one-half times her regular rate for any hours which exceed 40 hours per week. She worked 48 hours last week. Therefore, her gross wages were