The following totals for the month of April were compiled from the payroll data of Magnum Company:Salaries$10,000FICA taxes withheld750Income taxes withheld2,000Medical insurance deductions450Unemployment taxes420The journal entry for the accrual of the employer’s payroll taxes would include aa.debit to Payroll Tax Expense for $1,620b.credit to Payroll Tax Expense for $420c.debit to Payroll Tax Expense for $1,170d.debit to FICA Taxes Payable for $1,500

Date Accounts Debit Credit Payroll Tax Expense $1,170 FICA taxes Payable $750 Unemployment taxes payable $420Total payroll tax expense = FICA taxes withheld + Unemployment taxes Total payroll tax expense = $750 + $420 = $1,170 option c. is correct answer.

Answered: The following totals for the month of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following totals for the month of April were compiled from the payroll data of Magnum Company:

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

The journal entry for the accrual of the employer’s payroll taxes would include a

a.debit to Payroll Tax Expense for $1,620

b.credit to Payroll Tax Expense for $420

c.debit to Payroll Tax Expense for $1,170

d.debit to FICA Taxes Payable for $1,500

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