Texable,Inc.is required to match $45,900 for its portion of FICA and $4,700 for federal and state unemployment taxes.The entry to record Texable's payroll taxes includes:
A) debit to Payroll Tax Expense for $50,600.
B) credit to Payroll Tax Expense for $50,600.
C) debit to FICA Payable for $45,900.
D) debit to Unemployment Tax Payable of $4,700.

Question

Quizplus · Accepted Answer

The payroll tax expense includes both the FICA and unemployment taxes, so the total expense is $45,900 + $4,700 = $50,600, which is debited to Payroll Tax Expense.