Sarah Silver was just hired as an accountant by Nugget Mining Company. She will

Question

Sarah Silver was just hired as an accountant by Nugget Mining Company. She will be paid a salary of $800 per week.She started work on Monday, November 25, and though she gets paid weekly, Nugget Mining Company workers always gets paid one week in arrears, and thus she will receive her first paycheck on Friday, December 6. November month-end is Friday, November 30. Nugget Mining does not pay 100% of health insurance costs, thus $10 is withheld from Sarah's check each week for her share of her health insurance premium. Her FIT [Federal Income Tax withholding] is calculated to be $95.

Which one of the following statements is correct with respect to the two journal entries Nugget Mining Company will make on November 30 related to Sarah Silver's pay?
Payroll Tax Expense will be debited $95 for the FIT withheld.
Payroll Tax Expense will be debited in Nugget Mining Company's entry for its FICA and unemployment taxes.
Health Insurance Expense will be debited for the $10.
FICA Taxes Payable will be debited in the entry made related to Sarah's share of this tax.

Explanation / Answer

Which one of the following statements is correct with respect to the two journal entries Nugget Mining Company will make on November 30 related to Sarah Silver's pay? d. Payroll Tax Expense will be debited in Nugget Mining Company's entry for its FICA and unemployment taxes.

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