21) In December, 2010, Bob Cratchit worked for Scrooge & Marley and earned $1,000. Federal income tax withholding is 10%. The FICA rate is 6.2% and the Medicare tax is 1.45%. How much cash will Scrooge & Marley pay the government for FICA because of Bob’s December earnings?
A) $62.00
B) $124.00
C) $14.50
D) $29.00
22) In December 2010, Bob Cratchit worked for Scrooge & Marley and earned $1,000. Federal income tax withholding is 10%. The FICA rate is 6.2% and the Medicare tax is 1.45%. How much cash will Scrooge & Marley pay the government for Medicare tax because of Bob’s December earnings?
A) $62.00
B) $124.00
C) $14.50
D) $29.00
23) In December 2011, B. Rich worked for Payless, Inc. and earned $10,000. Federal income tax withholding is 20%. The FICA rate is 6.2% and the Medicare tax is 1.45%. What is B. Rich’s gross pay?
A) $12,000
B) $12,765
C) $13,385
D) $10,000
24) In December 2011, B. Rich worked for Payless, Inc. and earned $10,000. Federal income tax withholding is 20%. The FICA rate is 6.2% and the Medicare tax is 1.45%. What is B. Rich’s net pay?
A) $10,000
B) $8,000
C) $7,235
D) $6,615
25) In December 2011, B. Rich worked for Payless, Inc. and earned $10,000. Federal income tax withholding is 20%. The FICA rate is 6.2% and the Medicare tax is 1.45%. How much of B. Rich’s December salary will be included in Salary expense on Payless’ income statement for the year ended December 31, 2011?
A) $10,000
B) $7,235
C) $8,000
D) $12,000
26) In December 2011, B. Rich worked for Payless, Inc. and earned $10,000. Federal income tax withholding is 20%. The FICA rate is 6.2% and the Medicare tax is 1.45%. How much payroll tax expense for B. Rich’s December salary will Payless record when it pays these taxes?
A) $2,765
B) $765
C) $3,170.45
D) $1,240
27) In December 2011, B. Rich worked for Payless, Inc. and earned $10,000. Federal income tax withholding is 20%. The FICA rate is 6.2% and the Medicare tax is 1.45%. How much cash will Payless pay the government for FICA because of B. Rich’s December earnings?
A) $1,240
B) $2,765
C) $765
D) $1,530
28) In December 2011, B. Rich worked for Payless, Inc. and earned $10,000. Federal income tax withholding is 20%. The FICA rate is 6.2% and the Medicare tax is 1.45%. How much cash will Payless pay the government for Medicare tax because of B. Rich’s December earnings?
A) $765
B) $145
C) $290
D) $1,530
29) Liabilities are recorded once the amount is definitely determinable.
30) Salary payable is considered an estimated liability.
31) An employee’s gross pay is recorded as an expense on the employer’s books.
32) The amount withheld for FICA (Social Security) is first recorded as a liability on the employer’s books.
33) Employers are required by law to withhold from their employees’'earnings.
34) Interest is the cost of using someone else’s money.