Financial Accounting: Payroll, Bonds, Stock And Financial Statements Exam Questions And Answers | Latest Version 2026 | Graded A+

Financial Accounting: Payroll, Bonds, Stock And Financial Statements Exam Questions And Answers | Latest Version 2026 | Graded A+ What is the formula to calculate net pay from gross wages? - answer-Net pay = Gross wages - (FIT + FICA-OASDI + FICA-Medicare + State tax + Voluntary deductions) What is the journal entry to record Salaries and Wages Expense with a gross wage of $10,000? - answerDebit: Salaries and Wages Expense $10,000; Credit: Federal Income Tax Payable $1,200; Credit: FICAOASDI Payable $620; Credit: FICA-Medicare Payable $145; Credit: State Income Tax Payable $200; Credit: Voluntary Deductions Payable $300; Credit: Cash or Salaries Payable $7,535. What is the journal entry for employer payroll tax expense? - answer-Debit: Payroll Tax Expense $1,017; Credit: FICA-OASDI Payable $620; Credit: FICA-Medicare Payable $145; Credit: FUTA Payable $42; Credit: SUTA Payable $210. How is interest on a note calculated? - answer-Interest = Principal × Annual Rate × Time (in years). What is the journal entry to record accrued interest for a $50,000 note at 6% for 3 months? - answerDebit: Interest Expense $750; Credit: Interest Payable $750. What is the journal entry for paying previously accrued interest? - answer-Debit: Interest Payable $750; Credit: Cash $750. What is the journal entry for repaying a note at maturity? - answer-Debit: Notes Payable $50,000; Debit: Interest Expense (or Interest Payable) $1,500; Credit: Cash $51,500. What is the journal entry to record sales tax payable when merchandise is sold for $1,000 with a 7% sales tax? - answer-Debit: Cash (or AR) $1,070; Credit: Sales Revenue $1,000; Credit: Sales Tax Payable $70.What is the journal entry for deferred (unearned) revenue when cash is received in advance? - answerDebit: Cash $2,400; Credit: Unearned Revenue $2,400. How is revenue recognized from unearned revenue monthly? - answer-Debit: Unearned Revenue $200; Credit: Service Revenue $200. What are the terms of a bond? - answer-Face value (principal), maturity date (when principal is due), and stated interest rate (used to compute cash interest payments). What is a bond discount? - answer-When bonds are issued at less than face value because the market rate is greater than the stated rate. What is a bond premium? - answer-When bonds are issued above face value because the market rate is less than the stated rate. What is the journal entry to issue bonds at face value? - answer-Debit: Cash $100,000; Credit: Bonds Payable $100,000. What is the journal entry to issue bonds at a premium? - answer-Debit: Cash $107,000; Credit: Bonds Payable $100,000; Credit: Premium on Bonds Payable $7,000.