Keith,an Employee of Sunbeam,Inc

question 62

Multiple Choice

Keith,an employee of Sunbeam,Inc.,has gross salary for May of $15,000.The entire amount is under the OASDI limit of $118,500 and thus subject to FICA.He is also subject to federal income tax at a rate of 20%.Which of the following is a part of the journal entry to record the disbursement of his net pay? (Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%.) (Round the final answer to the nearest dollar.)

• A) debit to Cash for $10,852.50
• B) credit to Cash for $10,852.50
• C) debit to Employee Income Tax Payable of $10,852.50
• D) debit to FICA Tax Payable of $10,852.50

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Definitions:

Cilia

Microscopic, hair-like structures that extend from the surface of some cells and are involved in movement or sensory functions.

Trachea

The windpipe, a tube that conducts air from the larynx to the bronchi of the lungs, facilitating breathing.

Smooth Muscle

A type of involuntary muscle found within the walls of organs and structures such as blood vessels, the gastrointestinal tract, and the bladder, characterized by its lack of striations.

Goblet Cell

A column-shaped cell found in the respiratory and intestinal tracts, which secretes mucus to trap and move pathogens and dirt.