How to prepare a company’s payroll summary. 1) The posted payroll entry is based on info

How to prepare a company’s payroll summary. 1) The posted payroll entry is based on info

 How to prepare a company’s payroll summary.

 

1) The posted payroll entry is based on information obtained from

A) the payroll register.

B) the general journal.

C) each employee's earnings record.

D) a TD-1 form.

 

2) The Office Salaries Expense account would be used to record

A) net earnings for the office workers.

B) a credit for the amount owed to the office workers.

C) gross earnings for the office workers.

D) a debit for the amount of net pay owed to the office workers.

 

3) What liability account is reduced when the employees are paid?

A) Income Tax Payable, CPP Payable, EI Payable

B) Wages and Salaries Expense

C) Wages and Salaries Payable

D) Payroll Taxes Payable

 

4) What type of account is CPP Payable?

A) Asset

B) Liability

C) Revenue

D) Expense

 

5) What type of account is EI Payable?

A) Asset

B) Liability

C) Revenue

D) Expense

 

6) Which of the following is a law that has no effect on payroll net earnings?

A) Minimum Wage

B) Federal Income Tax

C) Provincial Income Tax

D) Canada Savings Bond

 

7) If the employee has $40 withheld from their cheque for CPP, what is the amount that the employer would need to pay?

A) $200

B) $100

C) $40

D) $400

 

8) If the employee has $200 withheld from their cheque for federal income tax, what is the amount that the employer would need to pay for their portion of the federal income tax?

A) $200

B) $100

C) $0

D) $400

 

9) Workers' compensation

A) insures employees against losses they may incur due to injury or death while on the job.

B) is based on the total estimated payroll.

C) is paid for by the employer.

D) All of the above are correct.

 

10) Blue's Tax Service has two types of employees, management and clerical support. The company estimates that it will pay the clerical support $240,000 next year and the managers $315,000. For every $100, the company pays $0.14 into the workers' compensation insurance. Calculate the amount of worker's compensation insurance.

A) $777

B) $336

C) $441

D) None of the above are correct.