Accounting Chapter 13 Study Guide

Questions and Answers

All the payroll information needed to prepare payroll and tax reports is found on?

The payroll register and the employee earnings record

The payroll journal entry is based on the totals of the?

Earnings Total column, each deduction column, and the Net Pay column

The Earnings Total column total is journalized as a debit to?

Salary Expense

The total of the Federal Income Tax column of a payroll register is credited to?

A liability account Signup and view all the answers

The total of the Net Pay column of the payroll register is credited to?

An asset account Signup and view all the answers

When a semimonthly payroll is paid, the credit to Cash is equal to the?

Net pay of all employees Signup and view all the answers

Employer business taxes are?

Expenses Signup and view all the answers

Payroll taxes that are paid by both the employer and the employee are?

Social Security and Medicare tax Signup and view all the answers

A federal tax used for state and federal administrative expenses of the unemployment program is the?

Federal unemployment tax Signup and view all the answers

A state tax used to pay benefits to unemployed workers is the?

State unemployment tax Signup and view all the answers

To record the employer payroll taxes expense, the following accounts are credited?

Social Security Tax Payable, Medicare Tax Payable, Unemployment Tax Payable - Federal, and Unemployment Tax Payable - State Signup and view all the answers

Each employer who withholds income tax, social security tax, and Medicare tax from employee earnings must furnish each employee with?

IRS Form W-2 Signup and view all the answers

Each employer is required by law to report payroll taxes on an?

IRS Form 941 Signup and view all the answers

To record the total federal tax payment for employee income tax, social security tax, and Medicare tax, the account credited is?

Cash Signup and view all the answers

To record the payment of federal unemployment tax, the account debited is?

A liability account Signup and view all the answers

Record the transactions for paid cash for semimonthly payroll:

Debit = Salary Expense Credit = Cash, Employee Income Tax Payable, Social Security Tax Payable, and Medicare Tax Payable Signup and view all the answers

Record the transactions for recorded employer payroll taxes expense:

Debit = Payroll Taxes Expense Credit = Social Security Tax Payable, Medicare Tax Payable, Unemployment Tax Payable - Federal, Unemployment Tax Payable - State Signup and view all the answers

Record the payment of cash for liability for employee income tax, social security tax, and Medicare tax:

Debit = Employee Income Tax, Social Security Tax Payable, Medicare Tax Payable Credit = Cash Signup and view all the answers

Record the payment of federal unemployment tax liability:

Debit = Unemployment Tax Payable - Federal Credit = Cash Signup and view all the answers

Record the payment of state unemployment tax liability:

Debit = Unemployment Tax Payable - State Credit = Cash Signup and view all the answers

Study Notes

Payroll Management Key Concepts

Payroll information essential for tax reports is found in the payroll register and employee earnings record.
The payroll journal entry is based on totals from the Earnings Total column, each deduction column, and the Net Pay column.

Payroll Entries

Earnings Total: Journalized as a debit to Salary Expense.
Federal Income Tax: Total credited to a liability account.
Net Pay: Total credited to an asset account.
Cash credit for semimonthly payroll equals the total net pay of employees.

Employer Responsibilities

Employer business taxes are categorized as expenses.
Payroll taxes paid by both employer and employee include Social Security and Medicare taxes.
Employers must issue IRS Form W-2 to each employee detailing withheld amounts.

Tax Reporting and Payments

Federal Unemployment Tax provides funding for state and federal unemployment programs.
State Unemployment Tax is utilized to pay benefits to unemployed workers.
Employers report payroll taxes using IRS Form 941.
Payment of federal tax for income tax, Social Security, and Medicare results in a debit to Cash.

Accounting for Payroll Taxes

To record employer payroll taxes:
- Debit Payroll Taxes Expense.
- Credit accounts for Social Security Tax Payable, Medicare Tax Payable, and both Federal and State Unemployment Tax Payables.
Payments for employee-related liabilities are accounted for by debiting the respective tax payable accounts and crediting Cash.

Cash Payments for Tax Liabilities

Federal Unemployment Tax payment is recorded by debiting Unemployment Tax Payable - Federal and crediting Cash.
State Unemployment Tax payment is recorded similarly with Unemployment Tax Payable - State.

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Description

Prepare for your Accounting Chapter 13 exam with these study guide flashcards. This quiz covers essential payroll information, journal entries, and key concepts necessary for understanding payroll processing and reporting. Test your knowledge and reinforce your learning with targeted questions.