Dan Jones and Pat Smith Are the Only Two Employees

question 142

Multiple Choice

Dan Jones and Pat Smith are the only two employees of Lone Star Company.In January,2012,Dan's gross pay was $4,400 and Pat's gross pay was $5,200.All earnings are subject to FICA taxes of 7.65%. Which of the following would be included in the entry to record the salary expense for January?

• A) A debit to Salary payable to employees for $734.40
• B) A debit to FICA tax payable for $734.40
• C) A credit to FICA tax payable for $734.40
• D) A credit to Salary expense for $734.40

---

Definitions:

Time/Costs Button

A feature in project management or accounting software that allows users to track and record time spent on tasks and the associated costs.

Pay Sales Taxes Icon

A software interface element that allows users to manage and remit the sales taxes collected from customers.

Sales Taxes

Taxes imposed by the government on sales of goods and services, which are typically paid by the consumer at the point of sale.

Payroll Liabilities

Obligations arising from salaries, wages, taxes, and other amounts due to employees.