The following totals for the month of April were taken from the payroll records of Noll Company. Salaries $60,000
FICA taxes withheld 4,590
Income taxes withheld 12,500
Medical insurance deductions 2,250
Federal unemployment taxes 160
State unemployment taxes 1,080
The entry to record the accrual of federal unemployment tax would include a
A) credit to Federal Unemployment Taxes Payable for $160.
B) debit to Federal Unemployment Taxes Expense for $160.
C) credit to Payroll Tax Expense for $160.
D) debit to Federal Unemployment Taxes Payable for $160.

Question

Quizplus · Accepted Answer

Federal unemployment tax is an expense to the company and is recorded as a debit to Federal Unemployment Taxes Expense. The corresponding credit is to Federal Unemployment Taxes Payable, which is a liability account.

The Following Totals for the Month of April Were Taken