Payroll Accounting
Payroll Accounting
19th Edition
ISBN: 9781337619769
Author: BIEG, Bernard J.
Publisher: Cengage Learning
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Chapter 5, Problem 1MQ
  1. _____ 1. Reciprocal arrangements
A. Extra state unemployment contributions made by the employers
  1. _____ 2. Title XII advances
B. Favorable employment records result in a lower SUTA tax
  1. _____ 3. Negative-balance employers
C. Annual Federal Unemployment Tax Return
  1. _____ 4. Dumping
D. Poor experience-rated companies form new companies with lower unemployment tax rates
  1. _____ 5. Over $500
E. Pay FUTA tax with Schedule H of Form 1040
  1. _____ 6. Merit rating
F. Provide unemployment insurance coverage and payment of benefits to interstate workers
  1. _____ 7. Form 940
G. Borrowings from federal government to pay unemployment compensation benefits
  1. _____ 8. Household employers
H. Employers whose reserve account has been charged with more benefits paid out than contributions made
  1. _____ 9. Wage information reports
I. Quarterly threshold for mandatory depositing of FUTA taxes
  1. _____ 10. Voluntary contributions
J. Quarterly reports submitted to the state listing employees, SSNs, and taxable wages
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The comparative balance sheets and an income statement for Raceway Corporation follow. Balance Sheets As of December 31   Year 2 Year 1 Assets     Cash $ 6,300 $ 48,400 Accounts receivable 10,200 7,260 Inventory 45,200 56,000 Prepaid rent 700 2,140 Equipment 140,000 144,000 Accumulated depreciation (73,400) (118,000) Land 116,000 50,000 Total assets $ 245,000 $ 189,800 Liabilities     Accounts payable (inventory) $ 37,200 $ 40,000 Salaries payable 12,200 10,600 Stockholders’ equity     Common stock, $50 par value 150,000 120,000 Retained earnings 45,600 19,200 Total liabilities and stockholders’ equity $ 245,000 $ 189,800 Income Statement For the Year Ended December 31, Year 2 Sales $ 480,000 Cost of goods sold (264,000) Gross profit 216,000 Operating expenses   Depreciation expense (11,400) Rent expense (7,000) Salaries expense (95,200) Other operating expenses (76,000) Net income $ 26,400 Other Information Purchased…
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