Question

The following totals for the month of June were taken from the payroll register of Xenos Company:

Salaries expense $14,000
Social security and Medicare taxes withheld 1,050
Federal income taxes withheld 2,800
Retirement savings 500
The entry to record the accrual of employer's payroll taxes would include a
a. debit to Payroll Tax Expense for $2,800.
b. credit to Social Security and Medicare Tax Payable for $2,100.
c. debit to Payroll Tax Expense for $1,050.
d. debit to Payroll Tax Expense for $500.

Answer 1

c. debit to Payroll Tax Expense for $1,050.

Step-by-step explanation:

The payroll tax expense includes various expense like - Social security tax payable, medicare tax payable, unemployment tax payable, etc.

So, we consider these items only.

The journal entry is shown below:

Payroll expense A/c Dr XXXXX

To Social security taxes payable A/c XXXXX

To Medicare taxes payable A/c XXXXX

(Being payroll expense is recorded)

All other information which is given is not relevant. Hence, ignored it