Help me selecting the right answer. Thank you **Payroll Tax Entry Calculation for Lone Star, Inc.**This exercise involves calculating the payroll tax expense for two employees of Lone Star, Inc., Dan Jones and Pat Smith. In January 2025, Dan's gross pay was $9,000, and Pat's gross pay was $16,400. All earnings are subject to the following tax rates:- FICA—OASDI Tax: 6.2%- FICA—Medicare Tax: 1.45%The task is to determine which accounting entry would be used to record the payroll tax expense to be paid by Lone Star, Inc. for January.The options provided are:1. A credit to Salaries Expense for $368.302. A credit to FICA—Medicare Taxes Payable for $368.303. A debit to Salaries Payable to employees for $368.304. A debit to FICA—OASDI Taxes Payable for $368.30This scenario introduces the practical application of payroll accounting, focusing on how companies handle deductions and record liabilities associated with employee remuneration.

Salaries Expense is an expense for the business that has been increased. FICA Medicare Taxes…

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

List some common consulting engagements.
Hello, could i depend on this solution is it an expert solution?
Define advances from customers.
What do you understand by crowdfunding?
Looking at the changes, what conclusions can you draw from them?
Ma1 . Who benefits most from Peace of Mind®? Complex return filers. EITC filers. Clients with refunds. All clients.
Can you make QBI easier to understand? Can you say what the steps are?
In what situation should you MAKE?
I need help
Title 1. Complete a search of online resources for grieving individuals. Which ones might you find helpful Description 1. Complete a search of online resources for grieving individuals. Which ones might you find helpful in your work with clients? Which ones might be helpful for your clients? 2. What do you think should be the minimum level of education, training, and experience for individuals who assist bereaved individuals?
Can anyone explain how to do these problems step by step?
Please show and explain all steps to solve this problem.