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13 Pages Contestant Number____________
Time____________ Rank____________
PAYROLL ACCOUNTING (04)
Regional– 2009
Multiple Choice (15 @ 3 points each) ______________ (45 pts.)
Short Answers ______________ (19 pts.)
Production Portion Problem 1: Earnings Record ______________ (20 pts.)
Problem 2: Salary Expense Entry ______________ (16 pts.)
Problem 3: Payroll Tax Expense Entry ______________ (12 pts.)
TOTAL POINTS ______________ (112)
Failure to adhere to any of the following rules will result in disqualification:
1. Contestant must hand in this test booklet and all printouts. Failure to do so will **_result in disqualification.
- No equipment, supplies, or materials other than those specified for this event are_** allowed in the testing area. No previous BPA tests and/or sample tests or facsimile (handwritten, photocopied, or keyed) are allowed in the testing area.
- Electronic devices will be monitored according to ACT standards.
No more than ten (10) minutes orientation No more than 110 minutes testing time No more than ten (10) minutes wrap-up
Property of Business Professionals of America. May be reproduced only for use in the Business Professionals of America Workplace Skills Assessment Program competition.
REGIONAL 2009 PAGE 2 of 13 General Instructions
You have been hired as a Financial Assistant and will be keeping the accounting records for Professional Business Associates, located at 5454 Cleveland Avenue, Columbus, Ohio 43231. Professional Business Associates provides accounting and other financial services for clients. You will complete jobs for Professional Business Associates’ own accounting records, as well as for clients.
You will have 90 minutes to complete your work. The test is divided into two parts. The multiple choice and short answer questions should be completed first, and then the accounting problems may be completed in any order.
Your name and/or school name should NOT appear on any work you submit for grading. Write your contestant number in the provided space. Staple all pages in order before you turn in your test.
Assumptions to make when taking this assessment:
Round all calculations to two decimal places Assume employees earn overtime for any hours worked over 40 hours in a week unless otherwise instructed All time calculations are rounded to the nearest quarter hour Income Tax Withholding Tables are provided at the end of the assessment Use 6.2% for Social Security Tax and 1.45% for Medicare Tax Use 5.4% for State Unemployment Tax and 0.8% for Federal Unemployment Tax Assume that no employee has accumulated earnings in excess of the social security tax base
REGIONAL 2009 PAGE 4 of 13
- The amount of an employee’s earnings used to determine if certain payroll taxes will be deducted a. Net Pay b. Gross Pay c. Accumulated Earnings d. Quarterly Earnings
- The number of withholding allowances of an employee affect a. Social Security Taxes withheld b. Medicare Taxes withheld c. Federal Income Tax withheld d. Federal Unemployment Tax withheld
- Employee regular earnings are calculated as a. Regular hours times the regular rate of pay b. Regular hours divided by the regular rate of pay c. Regular hours plus overtime hours d. Regular hours minus overtime hours
- Until the amount of taxes withheld from the employee salaries are paid by the employer, they are recorded as a. Assets b. Liabilities c. Expenses d. Revenue
- Employers are required by law to furnish each employee with a statement of annual earnings and deductions. This form is called a. W-4 Form b. W-2 Form c. 941 Form d. 1040 Form
- Employers are required by law to furnish each employee with a statement of annual earnings and deductions no later than a. December 31 of the current year b. January 1 of the following year c. January 15 of the following year d. January 31 of the following year
- The tax base is $9,000.00 for unemployment taxes and an employee has accumulated earnings of $8,200.00 on March 30. On April 15 the employee’s gross earnings are $1,300.00. How much of his April 15 earnings are subject to unemployment taxes? a. $ 1,300. b. $ 8,200. c. $ 800. d. None, he has exceeded the tax base
REGIONAL 2009 PAGE 5 of 13
- The amount of social security tax paid by an employer is a. Twice the employees rate of social security tax b. The same as the employees rate of social security tax c. Half the amount of the employees rate of social security tax d. Employers are not required to pay social security tax
Short Answer:
- Aiden James is paid bi-weekly. During the first week he works 47 hours and during the second week he works 38 hours. How many hours of overtime will the employee be paid?
- Molly Alexander is paid every week. Her hourly rate of pay is $6.25 per hour. Molly is expected to produce 120 units per day. For every unit produced over 120 she receives an incentive of $1.20 per unit. Last week Molly produced the following and worked 40 hours:
Monday Tuesday Wednesday Thursday Friday Total Regular Pay
Incentive Pay 125 119 130 123 118
What were Molly’s Total Earnings before taxes for the week?
- Blake Manning recently accepted a job that pays a monthly salary of $2,500 as well as a 15% commission on sales over $10,000 per week. Blake is paid monthly, however, on the 10 th^ of every month he receives a draw check of $1000. Using the following information calculate Blake’s gross earnings for the month of May.
Week Total Sales Week #1 $15,000. Week #2 $21,000. Week #3 $11,000. Week #4 $18,000.
Blake’s Total Commission ________________________
Blake’s Total Earnings for the month ________________________
REGIONAL 2009 PAGE 7 of 13
Problem #
Use the information below to complete the first quarter Employee Earnings Record for Linda Morris. Linda is a sales manager and she is a salaried employee. Her social security number is 345-44-8577. The weekly pay period ended February 15, 2009.
Earnings Deductions Employee No.
Employee Name
Marital Status
No. of Allowances
Regular Overtime United Way Deduction
Health Insurance
121 Morris, Linda
S 1 $789.
122 Moyer,Elizabeth M 4 $845.0 0 $36.00 $25.00 $36.
123 Nethers,Porter M 2 $978.0 0 $78.00 $48.
124
Russ, George S^0
EARNINGS RECORD FOR QUARTER ENDED _____________________
Employee No.______ ______________________________ Marital _____Withholding______ Last Name First Status Allowances
Rate of Pay____________ Social Security No. _______________ Position_______________ Pay Period Earnings Deductions Accumulated Earnings 2,367. No Ended^ Regular^ Overtime^ Total Federal Income Tax
Social Security Tax
Medicare Tax
Other Total Net Pay
REGIONAL 2009 PAGE 8 of 13
Problem #
Journalize the payment of the April 30 payroll on Page 6 of the General Journal provided. Use the current year. Check #315: Source documents are Check 315 and memorandum 135.
Date of payment: April 30, 2009
Total Payroll $2,971.
Federal Income Tax Withheld $ 268.
Social Security Tax Withheld $ 184.
Medicare Tax Withheld $ 43.
United Way Donations $ 10.
U.S. Savings Bonds $ 15.
GENERAL JOURNAL Page _6
Date Account Title
Doc No.
Post Ref. Debit Credit
- REGIONAL
- PAGE 10 of
- REGIONAL
- PAGE 11 of
- REGIONAL
- PAGE 12 of
- REGIONAL
- PAGE 13 of
7 Pages
PAYROLL ACCOUNTING (04)
Regional—
KEY
Multiple Choice (15 @ 3 points each) ______________ (45 pts.)
Short Answers ______________ (19 pts.)
Production Portion Problem 1: Earnings Record ______________ (20 pts.)
Problem 2: Salary Expense Entry ______________ (16 pts.)
Problem 3: Payroll Tax Expense Entry ______________ (12 pts.)
TOTAL POINTS ______________ (112)
Judges/Graders:
Please double-check and verify all scores!
Property of Business Professionals of America. May be reproduced only for use in the Business Professionals of America Workplace Skills Assessment Program competition.
KEY REGIONAL 2009 PAGE 3 of 7
Multiple Choice:
1. A
2. C
3. A
4. B
5. A
6. C
7. A
8. C
9. C
10. A
11. B
12. B
13. D
14. C
15. B
Short Answer:
1. Aiden James is paid bi-weekly. During the first week he works 47 hours and during the
second week he works 38 hours. How many hours of overtime will the employee be paid?
(1 pt.)
7 Hours
2. Molly Alexander is paid every week. Her hourly rate of pay is $6.25 per hour. Molly is
expected to produce 120 units per day. For every unit produced over 120 she receives an
incentive of $1.20 per unit. Last week Molly produced the following and worked 40 hours:
Monday Tuesday Wednesday Thursday Friday Total
Regular
Pay
Incentive
Pay
What were Molly’s Total Earnings before taxes for the week? (3 pts.)
KEY REGIONAL 2009 PAGE 4 of 7
3. Blake Manning recently accepted a job that pays a monthly salary of $2,500 as well as a
15% commission on sales over $10,000 per week. Blake is paid monthly, however, on the
10 th^ of every month he receives a draw check of $1000. Using the following information
calculate Blake’s gross earnings for the month of May. (2 pts.)
Week Total Sales
Week #1 $15,000.
Week #2 $21,000.
Week #3 $11,000.
Week #4 $18,000.
Blake’s Total Commission $ 3,750.
Blake’s Total Earnings for the month $ 6,250.
4. You recently accepted a job that pays a salary of $225.00 per week. Last week you
worked 45 hours. How much overtime were you paid? (1 pt.)
NONE
5. Using the following time card, calculate the regular, overtime and total earnings for Grace
Tompkins. Grace is not paid for a 30 minute lunch period each day she works more than 5
hours. (14 pts.)
Time Card
Employee No. 191 Week Ending April
Name: Tompkins, Grace Exemptions: 4
Social Security No.: 333-45-3321 Hourly Rate: $6.
Day In Out Hours
Monday 8:01 AM 4:29 PM 8
Tuesday 7:56 AM 5:02 PM 8.
Wednesday 9:02 AM 6:03 PM 8.
Thursday 8:04 AM 7:03 PM 10.
Friday 8:02 AM 6:01 PM 9.
Saturday 9:01 AM 1:05 PM 4
Hours Rate Earnings
Regular 40 6.75 270.
Overtime 9 10.13 91.
Totals 49 351.
3 pts. 2 pts. 9 pts.
KEY REGIONAL 2009 PAGE 6 of 7
Problem #
Journalize the payment of the April 30 payroll on Page 6 of the General Journal provided. Use
the current year. Check #315: Source documents are Check 315 and memorandum 135. (
pts.)
Date of payment: April 30, 2009
Total Payroll $2,971.
Federal Income Tax Withheld $ 268.
Social Security Tax Withheld $ 184.
Medicare Tax Withheld $ 43.
United Way Donations $ 10.
U.S. Savings Bonds $ 15.
GENERAL JOURNAL Page _6
Date
20xx Account Title
Doc
No.
Post
Ref.
Debit Credit
Apr^30 Salary Expense^
C
Fed. Inc. Tax Payable 2 6 8 00 Soc. Sec. Tax Payable 1 8 4 00 Med. Tax Payable 4 3 08 United Way Don. Pay. 1 0 00 U.S. Savings Bonds Pay. 1 5 00 Cash 2 4 5 0 92
1 pt. 7 pts. 1 pt. 1 pt. 6 pts.
NOTE TO GRADER: Account title abbreviations may be used and order of entries may vary.
KEY REGIONAL 2009 PAGE 7 of 7
Problem
Using the information provided in Problem #2, journalize the Employer’s Payroll Taxes on
Page 7 of the General Journal provided. (12 pts. Total)
GENERAL JOURNAL Page 7
Date
200X Account Title
Doc
No.
Post
Ref.
Debit Credit
Apr^30 Payroll Tax Expense^ M135^4 1 1
Fed Unemp. Tax Payable 2 3 77 State Unemp. Tax Pay. 1 6 0 43 Soc. Sec. Tax Payable 1 8 4 00 Medicare Tax Payable 4 3 08
1 pt. 5 pts. 1 pt. 1 pt. 4 pts.
NOTE TO GRADER: Account title abbreviations may be used and order of entries may vary.
