Use This Information to Answer the Following Question The Entry to Record the Accrual of Employer's Payroll Taxes

question 50

Multiple Choice

Use this information to answer the following question. The following totals for the month of November were taken from the payroll register of Levine Company:
$\begin{array}{llr} \text { Salaries expense } &\$12,000\\ \text { Social security and Medicare taxes withheld } &550\\ \text { Income taxes withheld } &2,500\\ \text { Medical insurance deductions } &250\\ \text { Life insurance deductions } &200\\ \text { Salaries subiect to federal and state unemployment taxes of 6.2 percent} &4,000\\\end{array}$

The entry to record the accrual of employer's payroll taxes would include a debit to Payroll Taxes and Benefits Expense for

• A) $1,248.
• B) $550.
• C) $798.
• D) $248.

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Definitions:

Accrual-Basis Revenues

Earnings recorded when they are earned, regardless of when the cash payment is received, under the accrual method of accounting.

Balance Sheet

An accounting statement that itemizes the assets, liabilities, and equity held by shareholders of a company on a specific date.

Rates Of Return

Measurements of the gain or loss on an investment relative to the amount of money invested.

Market Price

The price at which a product, asset, or service is sold on the open market.