Art Panache, the Sole Employee of Panache Sales, Has Gross

question 91

Multiple Choice

Art Panache, the sole employee of Panache Sales, has gross salary for May of $6,000. The entire amount is under the OASDI limit of $110,100, and thus subject to FICA. He is also subject to federal income tax at a rate of 20%. Which of the following is a part of the journal entry for accrual of the employer payroll taxes? (Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%.) Art's income to date exceeds the FUTA and SUTA tax income limits.

• A)credit to Salary payable for $6,000
• B)debit to Cash for $4,461
• C)debit to Employee income tax payable of $1,200
• D)credit to FICA-Medicare tax payable of $87

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Definitions:

Rehearsal

A cognitive process in which information is repeated over and over as a possible way of learning and remembering it.

Stress Hormones

Chemicals released in the body in response to stress, such as cortisol and epinephrine, that prepare the body for a fight or flight response.

Long-Term Potentiation

A long-lasting enhancement in signal transmission between two neurons that results from stimulating them synchronously, often considered one of the major cellular mechanisms that underlies learning and memory.

Cortexes

The plural of cortex, relating to the outer layer of an organ or structure, such as the brain, characterized by its role in high-level functions including thought, memory, and consciousness.