Question

Katie Pereira and Ferro Schwartz are employees of Free​ Star, Inc. In February​ 2017, Katie's gross pay was​ $8,500, and​ Ferro's gross pay was​ $10,900. All earnings are subject to FICAlong dash—OASDI Tax of​ 6.2% and FICAlong dash—Medicare Tax of​ 1.45%. Which of the following would be included in the entry to record the salaries expense for​ February?

Answer 1

Answer: credit to FICAlong dash —OASDI Taxes Payable for​ $1,202.80

Step-by-step explanation:

Given the following ;

Katie's gross pay =$8, 500

Ferro's gross pay = $10,900

FICAlong dash—OASDI Tax = 6.2%

FICAlong dash—Medicare Tax = 1.45%

Total gross pay = Katie's gross pay + Ferro's gross pay

Total gross pay = $(8500 + 10900) = $19,400

FICAlong dash—OASDI Tax = 6.2% = 0.062

0.062 × $19400 = $1,202.80

credit to FICAlong dash —OASDI Taxes Payable for​ $1,202.80