Dan Jones and Pat Smith Are Two Employees of Lone

question 159

Multiple Choice

Dan Jones and Pat Smith are two employees of Lone Star,Inc.In January 2017,Dan's gross pay was $10,500,and Pat's gross pay was $10,900.All earnings are subject to FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%.Which of the following would be included in the entry to record the payroll tax expense to be paid out by Lone Star,Inc.for January?

• A)a debit to Salaries Payable to employees for $310.30
• B)a debit to FICA-OASDI Taxes Payable for $310.30
• C)a credit to FICA-Medicare Taxes Payable for $310.30
• D)a credit to Salaries Expense for $310.30

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Definitions:

Consequential Damages

In a contract, foreseeable damages that result from special facts and circumstances arising outside the contract itself. The damages must be within the contemplation of the parties at the time the breach occurs. Also called special damages.

Remedial Damages

Compensation aimed at remedying or compensating for a harm or injury suffered by the plaintiff, often used interchangeably with compensatory damages in a different context.

Substitute Goods

Products or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.

Identical Goods

Products that are exactly the same in every aspect, including quality, appearance, and functionality.