Use the following information to answer the following questions. The following totals for the month of April were taken from the payroll register of Magnum Company.
The entry to record accrual of employer's payroll taxes would include a
A) debit to Payroll Tax Expense for $248
B) credit to FICA Taxes Payable for $1,100
C) credit to Payroll Tax Expense for $248
D) debit to Payroll Tax Expense for $798

Question

Use the following information to answer the following questions. The following totals for the month of April were taken from the payroll register of Magnum Company.
 The entry to record accrual of employer's payroll taxes would include a
A) debit to Payroll Tax Expense for $248 
B) credit to FICA Taxes Payable for $1,100 
C) credit to Payroll Tax Expense for $248 
D) debit to Payroll Tax Expense for $798

Quizplus · Accepted Answer

The accrual of employer's payroll taxes includes the FICA taxes payable and the employer's share of Medicare and Social Security taxes. The total FICA taxes payable for April were $1,100, and the employer's share of Social Security and Medicare taxes was $798. Therefore, the entry should include a debit to Payroll Tax Expense for $798, not $248 (options A and C) and a credit to FICA Taxes Payable for $1,100. Therefore, the correct answer is D.

Use the Following Information to Answer the Following Questions