The following totals for the month of April were taken from the payroll register of Kirk Company. The entry to record accrual of Kirk Company's payroll taxes would include a

Question

The following totals for the month of April were taken from the payroll register of Kirk Company.  The entry to record accrual of Kirk Company's payroll taxes would include a

Quizplus · Accepted Answer

To record the accrual of payroll taxes, we need to debit Payroll Tax Expense and credit the respective liabilities such as FICA Taxes Payable, Federal Income Taxes Payable, and State Income Taxes Payable. From the given information, we only have the total for FICA taxes, which is $2,200 ($1,100 employee portion + $1,100 employer portion). Therefore, the entry would be a debit to Payroll Tax Expense for the total payroll taxes of $1,596 ($2,200 - $496 for the employee portion of FICA taxes) and a credit to FICA Taxes Payable for $2,200.

The Following Totals for the Month of April Were Taken