Grammy's Bakery had the following information for the pay period ending June 30: Assume: FICA-OASDI applied to the first $128,400 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 FUTA Payable? (Round intermediary calculations to the nearest cent and final answers to the whole dollar.)
A) Debit $4
B) Credit $4
C) Debit $23
D) Credit $23

Question

Grammy's Bakery had the following information for the pay period ending June 30:  Assume: FICA-OASDI applied to the first $128,400 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 FUTA Payable? (Round intermediary calculations to the nearest cent and final answers to the whole dollar.)
A) Debit $4 
B) Credit $4 
C) Debit $23 
D) Credit $23

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 $128,400 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 FUTA Payable? (Round intermediary calculations to the nearest cent and final answers to the whole dollar.)
A) Debit $4 
B) Credit $4 
C) Debit $23 
D) Credit $23

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