Grammy’s Bakery had the following information for the pay period ending June 30:



Employee Name

Pay
Rate

Hours Worked

Cumulative Earnings

Department

Federal Income Tax Withheld


P. Ganster


$2,000

Salaried

$12,000

Kitchen

$86.00


T. Baker


10.00/hr

50

$6,500

Office

$22.00




Assume:
FICA-OASDI is applied to the first $106,800 at a rate of 6.2%.
FICA-Medicare is applied at a rate of 1.45%.
FUTA is applied to the first $7,000 at a rate of 0.8%.
SUTA is applied to the first $7,000 at a rate of 5.6%.
State income tax is 3.8%.

Given the above information, what would be the amount applied to Office Salaries Expense?




A. Debit of $550




B. Credit of $550




C. Debit of $500




D. Credit of $500




It's not D. I don't understand what they are asking for; can someone explain this? It says Office Salaries expense but, the Office department isn't paid on a salary it says T. Baker worked 50 hours. So why would there be an Office salaries expense for someone paid hourly?

If the table says the person works in the office then it might be expected his wages would be an office salary expense. When accounts are titled there is no implication that the transactions are exclusively salaries or wages. Such divisions are more traditional white collar salary, blue collar wages than functional