The journal entry to record employer payroll taxes affects:
A)assets only.
B)liabilities only.
C)liabilities and stockholders' equity.
D)assets and liabilities.

Question

Quizplus · Accepted Answer

The entry to record employer payroll taxes increases Payroll Tax Expense and increases two liability accounts,FICA Payable and Unemployment Tax Payable.The increase to Payroll Tax Expense decreases net income and,as a result,total stockholders' equity.

The Journal Entry to Record Employer Payroll Taxes Affects