Reference no: EM132768563

The following are payroll tax data related to the employees of a company:

FICA Taxes Payable, Employer: $32,000

Federal Unemployment Taxes Payable: $4,000

State Unemployment Taxes Payable: $24,000

Problem 1: What is needed in the journal entry to record these payroll tax data?

A. Credit to FICA taxes payable, employer for $32,000

B. Credit to payroll tax expense for $60,000

C. Debit to payroll tax liability for $28,000

D. Debit to state unemployment taxes payable for $24,000

Problem 2: A company made retail sales of $10,000 to its customers. The sales tax rate is 7.0%. All sales are cash sales. What is needed in the journal entry to record these sales?

A. Credit to sales revenue for $10,000

B. Debit to sales revenue for $10,000

C. Credit to sales revenue for $10,700

D. Debit to sales revenue for $10,700