According to a Summary of the Payroll of Scotland Company

question 116

Multiple Choice

According to a summary of the payroll of Scotland Company, $450,000 was subject to the 6.0% social security tax and $500,000 was subject to the 1.5% Medicare tax. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (4.2%) and federal
(0) 8%) unemployment taxes. The journal entry to record the accrued payroll taxes would include a​

• A) debit to SUTA Payable for $630
• B) debit to SUTA Payable for $18,900
• C) credit to SUTA Payable for $630
• D) credit to SUTA Payable for $18,900

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Definitions:

Consolidation Process

The procedure in financial accounting by which the financial statements of a parent company and its subsidiaries are combined to present as those of a single economic entity, adjusting for intragroup transactions and balances.

Segment Profit or Loss

It is the financial result (either profit or loss) generated by a specific segment or division within a company, separate from its overall results.

Disclosure

The process of providing vital information to shareholders and the public, often related to financial performance and operations.

Segment Information

Financial data broken down into parts of a company, such as departments or geographical locations, to provide insight into each segment's performance.