Unit 5 Test Review

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.

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

On December 23, Wake Incorporated received notice from the bank of a dishonored check from Davie Company in the amount of $125. The bank charged a service fee of $25. The correct journal entry for Wake Incorporated to record the dishonored check is:

• debit Accounts Receivable/Davie Company, $125, Bank Service Charge, $25; credit Cash, $150.

• debit Accounts Receivable/Davie Company, $150; credit Bank Service Charge, $25, Cash, $125.

• debit Accounts Receivable/Davie Company, $150; credit Cash, $150.

• debit Cash, $150; credit Accounts Receivable/Davie Company, $150.

On December 3, Union Manufacturing Company received a bank statement dated November 30. Review the following information obtained from the bank statement and from the records of the business. Based on the information provided, what is the adjusted checkbook balance?

• $3,420.50

• $3,870.00

• $3,879.00

• $4,319.50

Refer to the figure below. What are Nick's gross earnings for the pay period?

• $115.00

• $350.00

• $465.00

• $1,500.00

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

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. What is the Medicare withholding for Sally?

• $0.62

• $6.16

• $61.63

• $616.25

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. What is the state income tax withholding for Sally?

• $2.76

• $27.63

• $39.00

• $276.25

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