Jack,an Employee of Desert Sky,Inc

Multiple Choice

Jack,an employee of Desert Sky,Inc.,has gross salary for May of $9000.The entire amount is under the OASDI limit of $118,500 and thus subject to FICA.He is also subject to federal income tax at a rate of 21%.Which of the following is a part of the journal entry for accrual of the employer payroll taxes? (Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%.) Jack's income to date exceeds the FUTA and SUTA tax income limits.

A) credit to Salaries Payable for $9000
B) debit to Cash for $6601.50
C) debit to Employee Income Taxes payable of $1890.00
D) credit to FICA-Medicare Taxes Payable of $130.50