What is a financial reserve?
a. an amount of money that's been set aside for emergencies
b. a way of organizing finances to set and meet goals
c. an amount of money that's been set aside for short-term goals
d. a plan for what you'll do with your money

A financial reserve generally refers to (A) an amount of money that’s been set aside for emergencies.

Explanation:

edge 2021

a. Social Security Taxes

= Total wages * 6.2%

= (14,760 + 10,330 + 8,260) * 6.2%

= $‭2,067.70

b. Medicare taxes:

= Total wages * 6.2%

= (14,760 + 10,330 + 8,260) * 1.45%

= $483.58

c. Journal entry:

Date                   Account Title                                      Debit                 Credit

Jan, 21               Salaries Expense (Sales)                $14,760

                         Salaries Expense (Office)               $ 8,260

                         Salaries Expense (Truck driver)     $10,330

                         Social Security Tax Payable                                    $2,067.70

                         Medicare Tax payable                                             $  483.58

                         Federal income tax payable                                   $   4,002

                         Union Dues payable                                               $ 540

                         Salaries Payable                                                     $‭26,256.72‬