Question

The following totals for the month of April were taken from the payroll records of Vaughn Manufacturing. Salaries $122,400 FICA taxes withheld 9,360 Income taxes withheld 25,500 Medical insurance deductions 4,600 Federal unemployment taxes 330 State unemployment taxes 2,200 The entry to record accrual of employer's payroll taxes would include a

Answer 1

The entry to record accrual of employer's payroll taxes would include a debit to Payroll Taxes Expense and a credit to Accrued Payroll Taxes Payable.

Step-by-step explanation:

The entry to record accrual of employer's payroll taxes would include a debit to Payroll Taxes Expense and a credit to Accrued Payroll Taxes Payable.

The Payroll Taxes Expense account is used to record the employer's share of payroll taxes. In this case, the employer's share of FICA taxes, federal unemployment taxes, and state unemployment taxes would be recorded in the Payroll Taxes Expense account. The debit amount would be the total of these taxes, which is $9,360 + $330 + $2,200 = $11,890.

The Accrued Payroll Taxes Payable account is a liability account that represents the amount of payroll taxes that the employer owes but has not yet paid. The credit amount would also be the total of the taxes, which is $11,890.