The Payroll records of Oregon Mist contained the following information for the month of November: The journal entry to record the monthly Payroll Tax Expense would include a:
A)debit to Payroll Tax Expense of $25,200.
B)credit to FICA Taxes Payable of $43,400.
C)debit to Payroll Tax Expense of $48,650.
D)debit to Payroll Tax Expense of $26,950.

Question

The Payroll records of Oregon Mist contained the following information for the month of November:  The journal entry to record the monthly Payroll Tax Expense would include a:
A)debit to Payroll Tax Expense of $25,200. 
B)credit to FICA Taxes Payable of $43,400. 
C)debit to Payroll Tax Expense of $48,650. 
D)debit to Payroll Tax Expense of $26,950.

Quizplus · Accepted Answer

The entry to record the payroll taxes includes a debit to Payroll Tax Expense of $26,950 (or Federal unemployment taxes of $3,500 + State unemployment taxes of $1,750 + FICA taxes − employer of $21,700),a credit to FICA Payable of $21,700,and a credit to Unemployment Tax Payable for $5,250 (or $3,500 + $1,750).

The Payroll Records of Oregon Mist Contained the Following Information