Question

Texable, Inc. is required to match $45,900 for its portion of FICA and $4,700 for federal and state unemployment taxes. The entry to record Texable's payroll taxes includes ______.

(select all that apply.)

a) debit to FICA Payable for $45,900.

b) credit to Payroll Tax Expense for $50,600.

c) debit to Unemployment Tax Payable of $4,700.

d) debit to Payroll Tax Expense for $50,600.

Answer 1

The entry to record Texable's payroll taxes includes debit to FICA Payable for $45,900, debit to Unemployment Tax Payable of $4,700, and credit to Payroll Tax Expense for $50,600.

Step-by-step explanation:

The entry to record Texable's payroll taxes includes:

1. Debit to FICA Payable for $45,900
2. Debit to Unemployment Tax Payable of $4,700
3. Credit to Payroll Tax Expense for $50,600

These entries reflect the payment and liability for both FICA and federal/state unemployment taxes. The debits to FICA Payable and Unemployment Tax Payable represent the amounts Texable must pay, while the credit to Payroll Tax Expense reflects the reduction in Texable's net income due to the taxes.