Use this information to answer the following question. Panadora Company has the following information for the pay period of January 1-15,2014.Payment occurs on January 20.
The entry to record the payroll taxes expense would include a credit to
A)Salaries Payable.
B)Federal Income Taxes Payable.
C)Social Security Tax Payable.
D)Cash.

Question

Use this information to answer the following question. Panadora Company has the following information for the pay period of January 1-15,2014.Payment occurs on January 20.
 The entry to record the payroll taxes expense would include a credit to
A)Salaries Payable. 
B)Federal Income Taxes Payable. 
C)Social Security Tax Payable. 
D)Cash.

Quizplus · Accepted Answer

The entry to record payroll taxes expense includes a credit to Social Security Tax Payable, as Social Security taxes are a portion of the overall payroll taxes that must be withheld and remitted by the employer. The other options, Salaries Payable, Federal Income Taxes Payable, and Cash, are all related to other aspects of payroll processing and are not directly related to the recording of payroll taxes expense.

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