Question
Adding Machines International pays its employees $250,000. If the Social Security Tax is 6.20%, the Medicare Tax is 1.45%, and Income Tax Withholdings amount to
Adding Machines International pays its employees $250,000.
If the Social Security Tax is 6.20%, the Medicare Tax is 1.45%, and Income Tax Withholdings amount to 15.00%, which ONE of the following would be included in the SUMMARY JOURNAL ENTRY (ignoring any other tax)?
-CREDIT Medicare Tax Payable $7,250
-CREDIT Cash $250,000
-DEBIT Social Security Tax Payable $31,000
-CREDIT Compensation Payable $306,625
CREDIT Compensation Expense $269,125
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Cloud 9 Pty Ltd An Audit Case Study
Authors: John Wiley
1st Edition
0730329879, 978-0730329879
