Mid-West Tutoring Had the Following Payroll Information on January 31

question 77

Multiple Choice

Mid-West Tutoring had the following payroll information on January 31:
$$\begin{array} { | c | c | c | } \hline \text { Employee } & \text { Gross Pay } & \begin{array} { c } \text { Cumulative Earnings } \\\text { Prior to this Payroll }\end{array} \\\hline \text { R Baxter } & \$ 6,000 & \$ 6,000 \\\hline\end{array}$$
Assume:
FICA tax rates are: OASDI 6.2% on a limit of $117,000 and Medicare 1.45%.
State Unemployment tax rate is 2% on the first $7,000.
Federal Unemployment tax rate is 0.8% on the first $7,000.
Using the information above,the journal entry to record the employee's withholding taxes would include:

• A)a debit to Payroll Tax Expense in the amount of $6,000.
• B)a debit to Wages and Salaries Expense in the amount of $6,000.
• C)a credit to Cash in the amount of $6,000.
• D)a credit to FUTA Payable for $48.

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Definitions:

Stratum Spinosum

Layer of many-sided cells in the epidermis with intercellular connections (desmosomes) that give the cells a spiny appearance.

Stratum Corneum

The outermost layer of the skin, composed of dead keratinocytes, that serves as the primary barrier against environmental elements.

Melanin

is a pigment produced by melanocytes in the skin, determining skin and hair color and providing protection against UV radiation.

Keratinocytes

The primary type of cell found in the epidermis, responsible for producing keratin.