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Great Lakes Tutoring Had the Following Payroll Information on February

Question 91

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Great Lakes Tutoring had the following payroll information on February 28: Great Lakes Tutoring had the following payroll information on February 28:   Assume: FICA tax rates are: OASDI 6.2% on a limit of $106,800 and Medicare 1.45% State Unemployment tax rate is 2% on the first $7,000 Federal Unemployment tax rate is 0.8% on the first $7,000 Using the information above, the journal entry to record the payroll tax expense for Great Lakes Tutoring would include: A) a debit to Payroll Tax Expense in the amount of $390. B) a credit to FUTA Payable for $24. C) a credit to SUTA Payable for $60. D) All of the above are correct. Assume:
FICA tax rates are: OASDI 6.2% on a limit of $106,800 and Medicare 1.45%
State Unemployment tax rate is 2% on the first $7,000
Federal Unemployment tax rate is 0.8% on the first $7,000
Using the information above, the journal entry to record the payroll tax expense for Great Lakes Tutoring would include:


A) a debit to Payroll Tax Expense in the amount of $390.
B) a credit to FUTA Payable for $24.
C) a credit to SUTA Payable for $60.
D) All of the above are correct.

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