Art Parrish, the Sole Employee of Parrish Sales, Has Gross

question 141

Essay

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. His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA. Please provide the fourth journal entry in the payroll cycle to record the employer's payroll taxes.

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Definitions:

Extraterritoriality

A legal principle that allows individuals to be exempted from the jurisdiction of local law, usually based on diplomatic agreements or military occupation.

Bondage

The state of being a slave or serf under the control of another person, deprived of personal freedom.

James Madison

An American statesman, diplomat, expansionist, philosopher, and Founding Father who served as the fourth president of the United States from 1809 to 1817, known for his role in drafting and promoting the U.S. Constitution and the Bill of Rights.

Government Object

Typically refers to any item or document that is owned or created by a governmental body, encompassing a wide range of materials including official records, publications, and assets.