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

question 18

Essay

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%.His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA.Please provide the fifth journal entry in the payroll cycle to record the payment by the company of payroll taxes to the government.
$$\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline \\\hline\end{array}$$

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Definitions:

Price Level

The central value of current prices for each good and service in the economy.

Value of Money

The purchasing power of money, which varies with inflation and economic conditions, indicating how much goods and services money can buy.

Keynesian Economics

An economic theory suggesting that active government intervention in the marketplace and monetary policy is the best method of ensuring economic growth and stability.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment, serving as a key indicator of labor market health.