Acct 5.0 Test Review

Mayberry Ice Cream Shoppe has $1,500.00 in wages, $93.00 in Social Security withholding, $21.75 in Medicare withholding, $200.00 in federal income tax withholding, and $80.00 in state income tax withholding. The federal unemployment tax rate is 0.8%. In this scenario, what is the Medicare Tax Payable for the pay period?

• $21.75

• $43.50

• $80.00

• $93.00

Nick worked 35 hours, his rate of pay is $10.00/hour, he makes 2% commission, and the sales were $5,750.00. What are Nick's gross earnings for the pay period?

• $115.00

• $350.00

• $465.00

• $1,500.00

On April 16, Caldwell Company received notice from the bank of a dishonored check from Hickory Hosiery in the amount of $55. The bank charged a service fee of $25. The correct journal entry to record the dishonored check is:

• debit Accounts Receivable/Hickory Hosiery, $55, Bank Service Charge, $25; credit Cash, $80.

• debit Accounts Receivable/Hickory Hosiery, $80; credit Bank Service Charge, $25, Cash, $55.

• debit Accounts Receivable/Hickory Hosiery, $80; credit Cash, $80.

• debit Cash, $80; credit Accounts Receivable/Hickory Hosiery, $80.

On March 31 of the current year, Avery Company received a bank statement dated March 30. Review the following information obtained from the bank statement and from the records of the business. Based on this information, the journal entry to record the bank service charge is:

• debit Transaction Fee, $2.50; credit Cash, $2.50.

• debit Cash, $2.50; credit Transaction Fee, $2.50.

• debit Cash, $2.50; credit Miscellaneous Expense, $2.50.

• debit Miscellaneous Expense, $2.50; credit Cash, $2.50.

Sneaker’s Grill pays its employees weekly. Taxes are withheld based on the following percentages. Social Security Withholding: 6.20% Medicare Withholding: 1.45% Federal Income Tax Withholding: Tax Withholding Tables State Income Tax Withholding: 6.50% The table below provides information on two employees of the business. [Employee Name: Sally Smith, Marital Status: Married, Allowances: 0, Gross Pay: $425.00] What is the state income tax withholding for Sally?

• $2.76

• $27.63

• $39.00

• $276.25

Sneaker’s Grill pays its employees weekly. Taxes are withheld based on the following percentages. Social Security Withholding: 6.20% Medicare Withholding: 1.45% Federal Income Tax Withholding: Tax Withholding Tables State Income Tax Withholding: 6.50% The table below provides information on two employees of the business. [Employee Name: Sally Smith, Marital Status: Married, Allowances: 0, Gross Pay: $425.00] What is the Medicare withholding for Sally?

• $0.62

• $6.16

• $61.63

• $616.25

Sneaker's Grill pays its employees weekly. The table below provides information on two employees of the business. Taxes are withheld based on the percentages below. Social Security Withholding: 6.20% Medicare Withholding: 1.45% Federal Income Tax Withholding: Tax Withholding Tables State Income Tax Withholding: 6.50% What is the Social Security withholding for Kevin?

• $26.35

• $37.00

• $37.20

• $372.00

Matt has gross earnings of $300.00 and total deductions of $126.75. What is Matt's net pay?

• $426.75

• $300.00

• $173.25

• $126.75

On August 31 of the current year, Brunswick Builders received a bank statement dated August 30. Review the following information obtained from the bank statement and from the records of the business. Based on this information, what is the adjusted bank balance?

• $1,452.00

• $1,481.25

• $1,514.25

• $1,518.00

Greg has gross earnings of $245.00, Social Security withholding of $15.19, Medicare withholding of $3.55, federal income tax withholding of $50.00, and state income tax withholding of $15.93. What are Greg's total deductions?

• $84.67

• $160.33

• $245.00

• $329.67