Kevin,an Employee of Sunbeam,Inc

Multiple Choice

Kevin,an employee of Sunbeam,Inc. ,has gross salary for May of $8,000.The entire amount is under the OASDI limit of $117,000 and thus subject to FICA.He is also subject to federal income tax at a rate of 20%.Which of the following is a part of the journal entry to record the disbursement of his net pay? (Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%. )

A) debit to Cash for $5,788.00
B) credit to Cash for $5,788.00
C) debit to Employee Income Tax Payable of $5,788.00
D) debit to FICA Tax Payable of $5,788.00