Jason,an Employee of Fitzgerald,Inc

question 170

Multiple Choice

Jason,an employee of Fitzgerald,Inc.,has gross salary for March of $4,000.The entire amount is under the OASDI limit of $118,500,and thus subject to FICA.His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA.Which of the following is a part of the journal entry to record the employer's payroll taxes?

• A) credit to Payroll Tax Expense
• B) debit to FICA Taxes Payable
• C) credit to FICA-Medicare Taxes Payable
• D) debit to Cash

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Definitions:

Bank Statement

A document issued by a bank summarizing an account's transactions, including deposits, withdrawals, and current balance, over a specific period.

Deposits In Transit

Deposits made in a bank account that have not yet been processed and posted by the bank to the depositor's account balance.

NSF Check

A check that cannot be processed due to insufficient funds in the account it's drawn on, leading to a "non-sufficient funds" status.

Bank Statement

A monthly document provided by a bank detailing the account activity, including deposits, withdrawals, and current balance.