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