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: Assume: FICA tax rates are: OASDI 6.2% on a limit of $128,400 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.
Federal Income Tax Withheld $900; State Income Tax Withheld $300.
Using the information above, the journal entry to record the employee's payroll expense would include:

• A) a debit to Payroll Tax Expense in the amount of $4,300.
• B) a debit to Wages and Salaries Expense in the amount of $4,300.
• C) a credit to Cash in the amount of $4,300.
• D) a credit to FUTA Payable for $120.

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Definitions:

Perspective

A particular attitude toward or way of regarding something; a point of view.

Genetic Causes

Factors originating in an individual's DNA that contribute to the development of certain conditions or traits.

Intellectual Disability

A term used to describe a condition characterized by significant limitations in both intellectual functioning and in adaptive behavior, which covers many everyday social and practical skills.

Learning Disabilities

A variety of disorders that affect the ability to process, understand, or use information, impacting learning in individuals of normal or above-average intelligence.