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

question 90

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%.His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA.The fifth journal entry in the payroll cycle to record the payment by the company of payroll taxes to the government includes which of the following?

• A) Credit to Cash
• B) Credit to Employee income tax payable
• C) Credit to FICA tax payable
• D) Debit to Salary payable

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Definitions:

Cytosine

A pyrimidine base found in DNA and RNA that pairs with guanine.

Guanine

One of the four main nucleobases found in DNA and RNA, it pairs with cytosine during DNA replication.

Hydrogen Bonds

Weak bonds formed between a hydrogen atom and a more electronegative atom, important in the structure of DNA and proteins.

Adenine

A nucleotide base present in DNA and RNA, pairing with thymine in DNA and uracil in RNA, and is one of the four nucleotide bases.