Katie Pereira and Ferro Schwartz Are the Only Two Employees

question 62

Multiple Choice

Katie Pereira and Ferro Schwartz are the only two employees of Free Star Company. In February, 2013, Katie's gross pay was $5,500 and Ferro's gross pay was $5,900. All earnings are subject to FICA-OASDI Tax of 4.2% and FICA-Medicare Tax of 1.45%. Which of the following would be included in the entry to record the salary expense for February?

• A)a debit to Salary payable to employees for $478.80
• B)a debit to FICA-Medicare for $478.80
• C)a credit to FICA-OASDI Tax payable for $478.80
• D)a credit to Salary expense for $478.80

Understand the definition and significance of bailment, including the Statute of Fraids' relevance to bailment agreements.

Comprehend the responsibilities and liabilities of the bailee in different types of bailments.

Recognize the rights and obligations of bailors and bailees in mutual benefit bailments.

Identify the effects of negligence and the limitation of liability in bailment relationships.