Answer:
C) a credit to FICA-Medicare Taxes Payable for $390.05
Explanation:
Before passing the journal entry, first we have to do the calculations which are shown below:
The Total salary would be
= Dan's gross pay + Pat's gross pay
= $11,500 + $15,400
= $26,900
Now the FICA-OASDI Tax would be
= Total salary × tax rate
= $26,900 × 6.2%
= $1,667.80
And, the FICA-Medicare Tax would be
= Total salary × tax rate
= $26,900 × 1.45%
= $390.05
Now the journal entry would be
Salary expense A/c Dr $26,900
To FICA Social security payable $1,667.80
To FICA Medicare tax payable $390.05
To Salaries payable $24,842.15
(Being salary expense is recorded)
