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

question 72

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%.Art has a deduction of $320 for health insurance and $80 for United Way.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
• B) Credit to Payable to the United Way
• C) Debit FICA tax payable
• D) Debit Cash

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Definitions:

Postconventional

A stage of moral development in which individuals make judgments based on universal principles and the rights of others rather than convention.

Moral Development

Refers to the processes through which individuals acquire and understand moral standards and behaviors.

Kohlberg

A psychologist known for his theory of moral development, which describes how moral reasoning matures through stages over a person's lifetime.

Erikson

Erikson refers to Erik Erikson, a developmental psychologist known for his theory on the psychosocial development of humans, highlighting eight stages from infancy to adulthood.