Kinga International pays its employees $500,000. If the Social Security Tax is 6.20%, the Medicare Tax is
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Kinga International pays its employees $500,000. If the Social Security Tax is 6.20%, the Medicare Tax is 1.45%, and Income Tax Withholdings amount to 15.00%, which of the following would be included in the SUMMARY JOURNAL ENTRY (ignoring any other tax)?
CREDIT Compensation Payable $613,250
CREDIT Medicare Tax Payable $14,500
DEBIT Social Security Tax Payable $62,000
DEBIT Cash $500,000
CREDIT Compensation Expense $538,250
DEBIT Social Security Tax Payable $31,000
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