Dan Jones and Pat Smith are two employees of Lone Star, Inc. In January 2025, Dan's gross pay was $9,000, and Pat's gross pay was $16,400. 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? O a credit to Salaries Expense for $368.30 O a credit to FICA-Medicare Taxes Payable for $368.30 O a debit to Salaries Payable to employees for $368.30 O a debit to FICA-OASDI Taxes Payable for $368.30
Dan Jones and Pat Smith are two employees of Lone Star, Inc. In January 2025, Dan's gross pay was $9,000, and Pat's gross pay was $16,400. 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? O a credit to Salaries Expense for $368.30 O a credit to FICA-Medicare Taxes Payable for $368.30 O a debit to Salaries Payable to employees for $368.30 O a debit to FICA-OASDI Taxes Payable for $368.30
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter9: Payroll Accounting: Employer Taxes And Reports
Section: Chapter Questions
Problem 1CP
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![Dan Jones and Pat Smith are two employees of Lone Star, Inc. In January 2025, Dan's gross pay was $9,000, and Pat's gross pay was $16,400. 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 credit to Salaries Expense for $368.30
a credit to FICA-Medicare Taxes Payable for $368.30
a debit to Salaries Payable to employees for $368.30
a debit to FICA-OASDI Taxes Payable for $368.30](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8081b1e5-a0c8-4cb5-91f1-53aa25324d41%2F934e6da5-2774-45cb-8520-357e19871a40%2Flkclims_processed.png&w=3840&q=75)
Transcribed Image Text:Dan Jones and Pat Smith are two employees of Lone Star, Inc. In January 2025, Dan's gross pay was $9,000, and Pat's gross pay was $16,400. 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 credit to Salaries Expense for $368.30
a credit to FICA-Medicare Taxes Payable for $368.30
a debit to Salaries Payable to employees for $368.30
a debit to FICA-OASDI Taxes Payable for $368.30
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