The following totals for the month of April were taken from the payroll register of Magnum Company: Salaries $10,000 FICA taxes withheld 750 Income taxes withheld 2,000 Medical insurance deductions 450 Unemployment taxes 420 The entry to record accrual of employer’s payroll taxes would include a a.debit to Payroll Tax Expense for $1,170 b.debit to FICA Taxes Payable for $1,500 c.debit to Payroll Tax Expense for $1,620 d.credit to Payroll Tax Expense for $420

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter9: Payroll Accounting: Employer Taxes And Reports
Section: Chapter Questions
Problem 1SEA: CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL TAXES Portions of the payroll register for...
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The following totals for the month of April were taken from the payroll register of Magnum Company:

Salaries $10,000
FICA taxes withheld 750
Income taxes withheld 2,000
Medical insurance deductions 450
Unemployment taxes 420

The entry to record accrual of employer’s payroll taxes would include a

a.debit to Payroll Tax Expense for $1,170
b.debit to FICA Taxes Payable for $1,500
c.debit to Payroll Tax Expense for $1,620
d.credit to Payroll Tax Expense for $420
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