Rambling Company Has an Employee Whose Total Salary for the Month

Multiple Choice

Rambling Company has an employee whose total salary for the month of January totaled $20,000.The federal income tax rate for this employee is 15%,the FICA Social Security tax is 6.2%,and the FICA Medicare tax is 1.45%.How would the company accrue the January salaries expense and withholding of January taxes for this employee?

A) Debit Salaries Expense for $20,000,credit FICA-Social Security Taxes Payable for $1,240,credit FICA-Medicare Taxes Payable for $290,credit Employee Federal Income Taxes Payable for $3,000,and credit Salaries Payable for $15,470.
B) Debit Salaries Expense for $20,000,credit FICA-Social Security Taxes Payable for $1,240,credit FICA-Medicare Taxes Payable for $290,credit Employee Federal Income Taxes Payable for $3,000,and credit Cash for $15,470.
C) Debit Salaries Expense for $20,000 and credit Salaries Payable for $20,000.
D) Debit Salaries Expense for $15,470 and credit Salaries Payable for $15,470.
E) Debit Salaries Expense for $20,000,credit FICA-Social Security Taxes Expense for $1,240,credit FICA-Medicare Taxes Expense for $290,credit Employee Federal Income Taxes Expense for $3,000,and credit Cash for $15,470.