Abe Carter had gross earnings of $6,000 for the pay period ending 11/30. His total gross earnings as of 11/15 were $116,000. If Social Security taxes are 6.2% on a maximum earnings of $122,700 per year and Medicare tax is 1.45% on all earnings, the journal entry to record his earnings for the period ending 11/30 would include:
A)a credit to FICA Tax Payable for $87.00
B)a credit to Salaries Expense for $6,000
C)a credit to Medicare Tax Payable for $36.25
D)a credit to Medicare Tax Payable for $87.00

Question

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The Answer of Abe Carter had gross earnings of $6,000 for the pay period ending 11/30. His total gross earnings as of 11/15 were $116,000. If Social Security taxes are 6.2% on a maximum earnings of $122,700 per year and Medicare tax is 1.45% on all earnings, the journal entry to record his earnings for the period ending 11/30 would include:
A)a credit to FICA Tax Payable for $87.00
B)a credit to Salaries Expense for $6,000
C)a credit to Medicare Tax Payable for $36.25
D)a credit to Medicare Tax Payable for $87.00

Abe Carter Had Gross Earnings of $6,000 for the Pay