Grammy's Bakery Had the Following Information for the Pay Period

question 110

Multiple Choice

Grammy's Bakery had the following information for the pay period ending June 30: Assume: FICA-OASDI applied to the first $128,400 at a rate of 6.2%.
FICA-Medicare applied at a rate of 1.45%.
FUTA applied to the first $7,000 at a rate of 0.8%.
SUTA applied to the first $7,000 at a rate of 5.6%.
State income tax is 3.8%.
Given the above information, what would be the amount applied to FUTA Payable? (Round intermediary calculations to the nearest cent and final answers to the whole dollar.)

• A) Debit $4
• B) Credit $4
• C) Debit $23
• D) Credit $23

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Definitions:

Street Addresses

A series of characters and numbers that specify a particular location within a city, town, or other areas, used for identifying or locating buildings.

Functional Resumé

A type of resume focused on skills and experiences rather than chronological work history, emphasizing the candidate's abilities.

Work History

A record of an individual's employment background, including positions held, durations of employment, and sometimes responsibilities and achievements.

Formal Education

Structured learning provided by educational institutions like schools and colleges, leading to recognized qualifications.