Grammy's Bakery had the following information for the pay period ending June 30: Assume:
FICA-OASDI applied to the first $106,800 at a rate of 6.2%.
FICA-Medicare applied at a rate of 1.45%.
FUTA applied to the first $7,000 at a rate of 0.8%.
SUTA applied to the first $7,000 at a rate of 5.6%.
State income tax is 3.8%.
Given the above information, what would be the amount applied to Office Salaries Expense?
A)Debit $550
B)Credit $550
C)Debit $500
D)Credit $500

Question

Grammy's Bakery had the following information for the pay period ending June 30:  Assume:
FICA-OASDI applied to the first $106,800 at a rate of 6.2%.
FICA-Medicare applied at a rate of 1.45%.
FUTA applied to the first $7,000 at a rate of 0.8%.
SUTA applied to the first $7,000 at a rate of 5.6%.
State income tax is 3.8%.
Given the above information, what would be the amount applied to Office Salaries Expense?
A)Debit $550 
B)Credit $550 
C)Debit $500 
D)Credit $500

Quizplus · Accepted Answer

The Answer of Grammy's Bakery had the following information for the pay period ending June 30:  Assume:
FICA-OASDI applied to the first $106,800 at a rate of 6.2%.
FICA-Medicare applied at a rate of 1.45%.
FUTA applied to the first $7,000 at a rate of 0.8%.
SUTA applied to the first $7,000 at a rate of 5.6%.
State income tax is 3.8%.
Given the above information, what would be the amount applied to Office Salaries Expense?
A)Debit $550 
B)Credit $550 
C)Debit $500 
D)Credit $500

Grammy's Bakery Had the Following Information for the Pay Period