Dan Jones and Pat Smith Are the Only Two Employees

question 138

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 8%. Which of the following would be included in the entry to record the payroll tax expense to be paid out by Lone Star Company for January?

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

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Definitions:

Occipital Cortex

The region of the brain located in the occipital lobe, primarily responsible for processing visual information.

Physiological Reactions

Bodily responses to stimuli or situations that are automatic and not under voluntary control, such as changes in heart rate or hormonal activity.

Placebo Pill

An inert substance given to a participant in a study, which has no therapeutic effect and is used to control for the placebo effect in experiments.

Unconscious Attributions

Psychological processes that influence one's behavior and thoughts without their aware realization.