The following totals for the month of June were taken from the payroll register of Parks Company. $$\begin{array}{ll}
\text {salaries and wages }&\$80,000\
\text {FICA taxes withheld }&6,132\
\text {income taxes withheld }&17,600\
\text {medical insurance daductions }&3,200\
\text {federal unemployment taxes }&640\
\text {state unemployment taxes }&4,00
\end{array}$$ The entry to record the payroll tax expense would include a

Question

Quizplus · Accepted Answer

The entry to record the payroll tax expense would require a debit to Payroll Tax Expense. This is because payroll tax expense is an operating expense incurred by a company, and is recorded as a debit to reflect the increase in the expense. Other options such as debiting Salaries and Wages Payable or Federal Unemployment Taxes Expense, or crediting Payroll Tax Expense are not appropriate for recording the payroll tax expense.

The Following Totals for the Month of June Were Taken