Prepare the journal entry to record payroll

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Barbara Muller Services BMS pays its employees monthly. The payroll information listed below is for January 2021, the first month of BMS's fiscal year. Assume none of the employees' earnings reached $7,000 during the month.

Salaries$78,000 Federal income taxes to be withheld 21,000

Federal unemployment tax rate (F UTA)                   0.80%

State unemployment tax rate (after F U TA deduction) 5.40%

Social security tax rate                                            6.2%

Medicare tax rate                                                  1.45%

Question 1: Prepare The journal entry to record payroll for the January 2021 pay period will include a debit to payroll tax expense of:

Multiple Choice

  1. $4,836.
  2. $5,967.
  3. $51,033.
  4. $10,803.

Reference no: EM132461398

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