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

question 129

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%.His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA.The fifth journal entry in the payroll cycle to record the payment by the company of payroll taxes to the government includes which of the following?

• A) Credit to Salary payable
• B) Credit to Employee income tax payable
• C) Debit to FICA tax payable
• D) Debit to Salary payable

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Definitions:

Anklebones

The bones that form the ankle joint, primarily the tibia, fibula, and talus.

Coxal Bone

Another term for the hip bone, which is a large, flat bone overlying the hip joint on each side of the human pelvis.

Growth Plate

A shaft of cartilage between the epiphysis and the diaphysis; also known as the epiphyseal disk.

Epiphysis

The rounded end of a long bone, which is separated from the main bone body by a growth plate in children and adolescents.