Use this information to answer the following question. Panadora Company has the following information for the pay period of January 1-15,2014.Payment occurs on January 20.

-The entry to record the payroll taxes expense would include a credit to
A)Salaries Payable.
B)Federal Income Taxes Payable.
C)Social Security Tax Payable.
D)Cash.

Question

Use this information to answer the following question. Panadora Company has the following information for the pay period of January 1-15,2014.Payment occurs on January 20.

-The entry to record the payroll taxes expense would include a credit to
A)Salaries Payable. 
B)Federal Income Taxes Payable. 
C)Social Security Tax Payable. 
D)Cash.

Quizplus · Accepted Answer

The payroll tax expense relates to Social Security Tax Payable, Medicare Tax Payable and State Income Tax Payable. Therefore, the credit would be made to Social Security Tax Payable account.

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