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:

Cancer

A broad term for a large group of diseases characterized by the uncontrolled growth and spread of abnormal cells in the body.

Abbreviation

The act of shortening a word or phrase to create a simpler or more compact form, usually employing the initial letters.

PSA

Prostate-Specific Antigen, a protein produced by the prostate gland, levels of which are tested to screen for and monitor prostate cancer.

Meaning

The significance or understanding that is intended or represented by something.