The Following Totals for the Month of April Were Taken

question 90

Multiple Choice

The following totals for the month of April were taken from the payroll records of Metz Company. Salaries $30,000
FICA taxes withheld 2,295
Income taxes withheld 6,600
Medical insurance deductions 1,200
Federal unemployment taxes 240
State unemployment taxes 1,500
The entry to record the accrual of federal unemployment tax would include a

• A) credit to Federal Unemployment Taxes Payable for $240.
• B) credit to Federal Unemployment Taxes Expense for $240.
• C) credit to Payroll Tax Expense for $240.
• D) debit to Federal Unemployment Taxes Payable for $240.

---

Definitions:

Compounded Semi-Annually

The process of adding interest to the principal sum twice a year, where interest earns more interest in subsequent periods.

Compounded Quarterly

Interest is calculated four times a year on the initial principal and the added interest from previous periods.

20 Years

A period or duration of two decades.

Compounded Monthly

A term referring to the calculation of interest on the initial principal and also on the accumulated interest from previous periods, computed each month.