Dan Jones and Pat Smith Are the Only Two Employees

question 138

Multiple Choice

Dan Jones and Pat Smith are the only two employees of Lone Star Company.In January,2012,Dan's gross pay was $4,400 and Pat's gross pay was $5,200.All earnings are subject to FICA taxes of 8%. Which of the following would be included in the entry to record the payroll tax expense to be paid out by Lone Star Company for January?

• A) A debit to FICA tax payable for $734.40
• B) A credit to FICA tax payable for $734.40
• C) A credit to Salary expense for $734.40
• D) A debit to Salary payable to employees $734.40

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Definitions:

Hawthorne Effect

A phenomenon where individuals modify an aspect of their behavior in response to their awareness of being observed.

Student Observation

The process of systematically watching and noting the behaviors and skills of students, often used in educational settings to assess progress or identify needs.

Technology

The application of scientific knowledge for practical purposes, especially in industry or the development of devices, systems, or methods to solve problems.