A company's payroll for the month ended January 31 is summarized as follows: Total wages Federal income tax withheld FICA taxes (employee portion withheld) FICA taxes (employer portion) $10,000 $1,200 $700 $700 The company remits payroll taxes on the 15th of the following month. In its financial statements for the month ended January 31, what amounts should the company report as total payroll tax liability and as payroll tax expense? O Payroll tax liability: $1,400; Payroll tax expense: $700 O Payroll tax liability: $1,900; Payroll tax expense: $1,400 O Payroll tax liability: $2,600; Payroll tax expense: $700 O Payroll tax liability: $1,900; Payroll tax expense: $700 O Payroll tax liability: $1,200; Payroll tax expense: $1,400

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A company's payroll for the month ended January 31 is summarized as
follows:
Total wages
Federal income tax
withheld
FICA taxes
(employee portion
withheld)
FICA taxes
(employer portion)
$10,000
$1,200
$700
$700
The company remits payroll taxes on the 15th of the following month. In
its financial statements for the month ended January 31, what amounts
should the company report as total payroll tax liability and as payroll tax
expense?
O Payroll tax liability: $1,400; Payroll tax expense: $700
O Payroll tax liability: $1,900; Payroll tax expense: $1,400
O Payroll tax liability: $2,600; Payroll tax expense: $700
O Payroll tax liability: $1,900; Payroll tax expense: $700
O Payroll tax liability: $1,200; Payroll tax expense: $1,400
Transcribed Image Text:A company's payroll for the month ended January 31 is summarized as follows: Total wages Federal income tax withheld FICA taxes (employee portion withheld) FICA taxes (employer portion) $10,000 $1,200 $700 $700 The company remits payroll taxes on the 15th of the following month. In its financial statements for the month ended January 31, what amounts should the company report as total payroll tax liability and as payroll tax expense? O Payroll tax liability: $1,400; Payroll tax expense: $700 O Payroll tax liability: $1,900; Payroll tax expense: $1,400 O Payroll tax liability: $2,600; Payroll tax expense: $700 O Payroll tax liability: $1,900; Payroll tax expense: $700 O Payroll tax liability: $1,200; Payroll tax expense: $1,400
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