Art Parrish,the Sole Employee of Parrish Sales,has Gross Salary for March

question 72

Multiple Choice

Art Parrish,the sole employee of Parrish Sales,has gross salary for March of $4,000.The entire amount is under the OASDI limit of $106,800,and thus subject to FICA.He is also subject to federal income tax at a rate of 18%.Art has a deduction of $320 for health insurance and $80 for United Way.The second entry in the payroll cycle to record the disbursement of his net pay should include which of the following?

• A) Credit to Salary payable
• B) Credit to Payable to the United Way
• C) Debit FICA tax payable
• D) Debit Cash

---

Definitions:

Bar Code Scanners

Devices used to read the information contained in a bar code, translating the bar code's data pattern into a readable format for computers.

Data Collection

The process of gathering and measuring information on targeted variables in an established system, which then enables one to answer relevant questions and evaluate outcomes.

Solenoid Valve

An electromechanically operated valve used for controlling the flow of liquids or gases, commonly found in fluid power pneumatic and hydraulic systems.

Motor Starter Coil

An electromagnet in a motor starter that, when energized, creates the magnetic field to start or stop a motor.