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Business, 23.03.2021 20:10 lol23051

Richard and Linda are the only two employees of Bush Company. In January 2013, Richard's gross pay was $5,500 and Linda's gross pay was $5,200. Each employee pays federal income tax equal to 25% of gross pay. In addition, Linda pays $200 for insurance premiums and Richard pays $225. Each has $25 withheld for life insurance premiums. Assume a FICA tax rate of 8% on all earnings, a federal unemployment tax rate of 0.8%, and a state unemployment tax rate of 5.4%. The unemployment taxes are based on the first $7,000 of employee annual earnings. A. debit to FICA tax payable for $856.
B. debit to employee income tax payable for $2,675.
C. credit to state unemployment tax payable for $578.
D. debit to federal unemployment tax payable for $86.

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Richard and Linda are the only two employees of Bush Company. In January 2013, Richard's gross pay w...
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