The following totals for the month of April were taken from the payroll records of Noll Company. $$\begin{array} { l r }
\text { Salaries } & \$ 120,000 \
\text { FICA taxes withheld } & 9,180 \
\text { Income taxes withheld } & 25,000 \
\text { Medical insurance deductions } & 4,500 \
\text { Federal unemployment taxes } & 320 \
\text { State unemployment taxes } & 2,160
\end{array}$$ The entry to record the accrual of federal unemployment tax would include a
A)credit to Federal Unemployment Taxes Payable for $320.
B)debit to Federal Unemployment Taxes Expense for $320.
C)credit to Payroll Tax Expense for $320.
D)debit to Federal Unemployment Taxes Payable for $320.

Question

The following totals for the month of April were taken from the payroll records of Noll Company. $$\begin{array} { l r } 
\text { Salaries } & \$ 120,000 \
\text { FICA taxes withheld } & 9,180 \
\text { Income taxes withheld } & 25,000 \
\text { Medical insurance deductions } & 4,500 \
\text { Federal unemployment taxes } & 320 \
\text { State unemployment taxes } & 2,160
\end{array}$$ The entry to record the accrual of federal unemployment tax would include a
A)credit to Federal Unemployment Taxes Payable for $320.
B)debit to Federal Unemployment Taxes Expense for $320.
C)credit to Payroll Tax Expense for $320.
D)debit to Federal Unemployment Taxes Payable for $320.

Quizplus · Accepted Answer

The accrual of federal unemployment tax involves recognizing a liability, which requires a credit to Federal Unemployment Taxes Payable for $320.

The Following Totals for the Month of April Were Taken