The Statewide Sales Company Has Gross Salaries and Wages for March

question 48

Essay

The Statewide Sales Company has gross salaries and wages for March of $45,000. Provide the journal entry to record salaries and wages expense and payroll withholdings. (Assume a FICA-OASDI Tax of 4.2% and FICA-Medicare Tax of 1.45%.)Salaries and wages to date are under the OASDI limit. Assume no federal or state income taxes are due.

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Definitions:

Rate Of Inflation

The percentage increase in the general price level of goods and services in an economy over a period, indicating the rate at which purchasing power is eroding.

Financing

The process of providing funds for business activities, making purchases, or investing, through mechanisms like loans, credit, or investment.

AFDC

Aid to Families with Dependent Children, a former federal assistance program in the United States designed to provide financial aid to children whose families had low or no income.

Military Draft

The compulsory enlistment of individuals into the armed forces.