Question

1. The total of the net amount paid to employees each payday is debited to either the cash account or the wage expense account true or false?

2. Financial Statements are directly prepared after journalizing the entries. True or False?

3.which of the following information is contained in payroll register?

a. Number of withholding allowances, total earnings, deductions from total earnings and net pay for each employee

b. Period Covered by the payroll

c. name of each employee and marital status

d. all of these choices are correct

4. For what reason are "distribution" column sometimes provided in the payroll register?

a. To record regular and overtime pay rates

b. To classify deductions from salary

c. To classify the wages and salaries according to the nature of the wage and salary expense

d. to record the time worked

Answer 1

Solution 1:

False, The total of the net amount paid to employees each payday is not debited to either the cash account or the wage expense account, instead Wages payable is debited and cash credited for payment.

Solution 2:

False, Financial Statements are not directly prepared after journalizing the entries. After journalizing, ledger posting was done and trial balance is prepared.'

Solution 3:

Payroll register contains the following information:

a. Number of withholding allowances, total earnings, deductions from total earnings and net pay for each employee

b. Period Covered by the payroll

c. name of each employee and marital status

Hence option d "all of these choices are correct" is correct.

solution 4:

"distribution" column sometimes provided in the payroll register "To classify the wages and salaries according to the nature of the wage and salary expense"

Hence option c is correct.