Keith,an Employee of Sunbeam,Inc

Multiple Choice

Keith,an employee of Sunbeam,Inc.,has gross salary for May of $15,000.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 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%.) (Round the final answer to the nearest dollar.)

A) debit to Cash for $10,852.50
B) credit to Cash for $10,852.50
C) debit to Employee Income Tax Payable of $10,852.50
D) debit to FICA Tax Payable of $10,852.50