The following totals for the month of April were taken from the payroll register of Asplend Company. $$\begin{array}{ll}
\text {Salaries and wages }&\text {\$72,000 }\
\text {FICA taxes withheld }&5,508\\text {income taxes withheld}&15,000\\text { medical insurance deductions}&2,700\\text { federal unemployment taxes}&192\\text {state unemployment taxes }&1,296
\end{array}$$ The entry to record accrual of Asplend Company's payroll taxes would include a

Question

Quizplus · Accepted Answer

To record the accrual of payroll taxes, we need to debit the Payroll Tax Expense account and credit the various Payroll Taxes Payable accounts. The total amount of payroll tax expense is the sum of all the taxes listed in the payroll register, which is $6,996 (Social Security taxes of $4,336 + Medicare taxes of $1,014 + federal unemployment taxes of $130 + state unemployment taxes of $1,516). Therefore, the correct entry would be to debit Payroll Tax Expense for $6,996 and credit the appropriate Payroll Taxes Payable accounts. None of the other answer choices correctly reflect the total amount of payroll tax expense.

The Following Totals for the Month of April Were Taken