Question

The following totals for the month of April were taken from the payroll records of Oriole Company. 

Salaries                                $134400

FICA taxes withheld                10280

Income taxes withheld             28000

Medical insurance deductions   5000

Federal unemployment taxes     360 

State unemployment taxes        2420 

 

The entry to record the accrual of federal unemployment tax would include a 

• credit to Federal Unemployment Taxes Payable for $360. 

•  debit to Federal Unemployment Taxes Payable for $360. 

•  debit to Federal Unemployment Taxes Expense for $360. 

•  credit to Payroll Tax Expense for $360.

Answer 1

Particulars	Debit	Credit
payroll tax expense A/C	360
To federal unemployment taxes payable a/c		360

As we have to pay tax to the govt we are crediting the federal unemployment taxes so,that it will become a liability to company.