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

question 146

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.His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA.The fourth journal entry in the payroll cycle to record the employer's payroll taxes should include which of the following?

• A) Credit to Payroll tax expense
• B) Debit to FICA tax payable
• C) Credit to FICA tax payable
• D) Credit to Cash