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
Salaries subject to federal and state unemployment taxes of 6.2% 5,000
The entry to record the accrual of employer's payroll taxes would include a
A. to Payroll Tax Expense for $310.
B. to Social Security and Medicare Tax Payable for $2,100.
C. to Payroll Tax Expense for $1,050.
D. to Payroll Tax Expense for $1,360."

Answer 1

The correct entry to record the accrual of employer's payroll taxes for Xenos Company would include a charge to Payroll Tax Expense for $310, considering the 6.2% unemployment tax rate on the first $5,000 of salaries.

Step-by-step explanation:

The question pertains to the recording of the accrual of the employer's payroll taxes based on the given data for Xenos Company. The correct entry to record the employer's payroll tax expense would be tied to federal and state unemployment taxes. Since the rate given is 6.2% and it applies only to the first $5,000 of salaries, we multiply 6.2% by $5,000 to calculate the tax expense. Therefore, the entry to record the accrual of the employer's payroll taxes would include a charge to Payroll Tax Expense for $310, making answer option A correct.