The following totals for the month of April were taken from the payroll register

Question

The following totals for the month of April were taken from the payroll register of Kirk Company.

Salaries                                                                  $23,000

FICA taxes withheld                                                  1,100

Income taxes withheld 1,000

Medical insurance deductions                                      900

Federal unemployment taxes 56

State unemployment taxes 378

The entry to record accrual of Kirk Company’s payroll taxes would include a

A: debit to payroll tax expense for $1534

B: debit to paroll tax expense for $1434

C: credit to FICA taxes payable for $1534

D: credit to payroll tax expense for $1534

Explanation / Answer

A: debit to payroll tax expense for $1,534.

The entry to record accrual of Kirk Company’s payroll taxes would include a debit to payroll tax expense for:

= $1,100 + $56 + $378

= $1,534

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