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

question 134

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 $110,100, and thus subject to FICA. He is also subject to federal income tax at a rate of 18%. Art has a deduction of $320 for health insurance and $80 for United Way. Provide the Provide the journal entry to record salaries expense and payroll withholdings. (Assume a FICA-OASDI Tax of 4.2% and FICA-Medicare Tax of 1.45%.)

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Definitions:

Probabilities

The indication of how likely an event is to come to pass, given as a figure from 0 to 1.

Sample Proportion

The fraction or percentage of a sample that exhibits a particular attribute or characteristic.

Probability

A measure of the likelihood that an event will occur, ranging from 0 (impossibility) to 1 (certainty).

Population Proportion

The fraction of the population that holds a particular trait, attribute, or characteristic of interest.