Question
Keith, an employee of Sunbeam, Inc., has gross salary for May of $ 9 comma 000$9,000. The entire amount is under the OASDI limit of
Keith, an employee of Sunbeam, Inc., has gross salary for May of
$ 9 comma 000$9,000.
The entire amount is under the OASDI limit of $118,500 and thus subject to FICA. He is also subject to federal income tax at a rate of
2020%.
Which of the following is a part of the journal entry to record the disbursement of his net pay? (Assume a
FICAlong dashOASDI
Tax of
6.26.2%
and
FICAlong dashMedicare
Tax of
1.451.45%.
Round the final answer to the nearest dollar.)
A.
debit to Employee Income Tax Payable of $ 6 comma 512$6,512
B.
credit to Cash for $ 6 comma 512$6,512
C.
debit to FICA Tax Payable of $ 6 comma 512$6,512
D.
debit to Cash for $ 6 comma 512
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