Rambling Company Has an Employee Whose Total Salary for the Month

question 44

Multiple Choice

Rambling Company has an employee whose total salary for the month of January totaled $20,000.The federal income tax rate for this employee is 15%,the FICA Social Security tax is 6.2%,and the FICA Medicare tax is 1.45%.How would the company accrue the January salaries expense and withholding of January taxes for this employee?

• A)Debit Salaries Expense for $20,000,credit FICA-Social Security Taxes Payable for $1,240,credit FICA-Medicare Taxes Payable for $290,credit Employee Federal Income Taxes Payable for $3,000,and credit Salaries Payable for $15,470.
• B)Debit Salaries Expense for $20,000,credit FICA-Social Security Taxes Payable for $1,240,credit FICA-Medicare Taxes Payable for $290,credit Employee Federal Income Taxes Payable for $3,000,and credit Cash for $15,470.
• C)Debit Salaries Expense for $20,000 and credit Salaries Payable for $20,000.
• D)Debit Salaries Expense for $15,470 and credit Salaries Payable for $15,470.
• E)Debit Salaries Expense for $20,000,credit FICA-Social Security Taxes Expense for $1,240,credit FICA-Medicare Taxes Expense for $290,credit Employee Federal Income Taxes Expense for $3,000,and credit Cash for $15,470.

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