When recording the deposit of FUTA taxes owed, the proper entry is:
A) FUTA Tax Expense      Cash
B) Payroll Taxes      Cash
C) Payroll Taxes      FUTA Taxes Payable
D) FUTA Taxes Payable      Cash
E) FUTA Tax Expense      FUTA Taxes Payable

Question

When recording the deposit of FUTA taxes owed, the proper entry is:
A) FUTA Tax Expense      Cash
B) Payroll Taxes      Cash
C) Payroll Taxes      FUTA Taxes Payable
D) FUTA Taxes Payable      Cash
E) FUTA Tax Expense      FUTA Taxes Payable

Quizplus · Accepted Answer

When recording the deposit of FUTA taxes owed, the entry should be made in the FUTA Taxes Payable account as a credit and in the Cash account as a debit. The entry to reflect this is D) FUTA Taxes Payable - Cash.

When Recording the Deposit of FUTA Taxes Owed, the Proper