Art Parrish,the Sole Employee of Parrish Sales,has Gross Salary for March

question 121

Multiple Choice

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 $106,800,and thus subject to FICA.He is also subject to federal income tax at a rate of 18%.The second entry in the payroll cycle to record the disbursement of his net pay should include which of the following?

• A) Credit to Salary payable for $4,000
• B) Debit to Cash for $2,974
• C) Debit to Employee income tax payable of $720
• D) Credit to FICA tax payable of $306

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Definitions:

False High

An inaccurately elevated measurement or reading, often due to procedural or equipment errors.

Hemoglobin

A protein in red blood cells responsible for carrying oxygen from the lungs to the rest of the body.

Sphygmomanometer

A tool designed for blood pressure assessment, featuring a cuff that can be inflated to constrict blood flow, along with a manometer to gauge the pressure.

Systolic Blood Pressure

The top number in a blood pressure reading, indicating the pressure in the arteries when the heart beats.