Gainesville Truck Center This company has a weekly payroll of $10,000 for its employees who work Monday through Friday.Federal and state income taxes are withheld in the amounts of $1,700 and $400,respectively,and FICA taxes are withheld at a mandatory rate of 7.65% (6.2% for Social Security and 1.45% for Medicare) .In addition,the federal and state unemployment taxes are applied at rates of 2% and 5%,respectively.The company's year-end is December 31.
-Refer to the information for Gainesville Truck Center.Which of the following statements is true regarding the entry to record wages and the related liabilities?
A) FICA tax expense will be debited in the amount of $765.
B) Social security tax payable will be debited in the amount of $620.
C) Medicare tax payable will be credited in the amount of $145.
D) Federal income taxes payable will be credited in the amount of $2,100.
Correct Answer:
Verified
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