Use this information to answer the following question. The following totals for the month of November were taken from the payroll register of Levine Company: Salaries expense $12,000 Social security and Medicare taxes withheld 550 Income taxes withheld 2,500 Medical insurance deductions 250 Life insurance deductions 200 Salaries subject to federal and state unemployment taxes of 6.2 percent 4,000

Question

The entry to record the accrual of federal unemployment tax (assume FUTA tax of .8 percent) would include a
a. credit to Federal Unemployment Tax Payable for $32.
b. debit to Federal Unemployment Tax Payable for $32.
c. debit to FUTA Tax Expense for $32.
d. credit to Payroll Taxes and Benefits Expense for $32.

Answer 1

A