During the week ended June 15, Wiley Automotive's employees earned $2,000 of gross wages and had $300 of federal income tax withheld. All of their employees had already earned over $7,000 of gross wages for the year so none of their wages were subject to FUTA or SUTA tax. However, all of their wages were still subject to Social Security tax of 6.2% and Medicare tax of 1.45%. The journal entry to record Payroll Tax Expense for the pay period would be:
A.
| Payroll Taxes Expense | 453 | |||
| Employee Income Tax Payable | 300 | |||
| Social Security Tax Payable | 124 | |||
| Medicare Tax Payable | 29 | |||
B.
| Payroll Taxes Expense | 153 | |||
| Social Security Tax Payable | 124 | |||
| Medicare Tax Payable | 29 | |||
C.
| Social Security Tax Payable | 124 | |||
| Medicare Tax Payable | 29 | |||
| Payroll Taxes Expense | 153 | |||
D.
| Payroll Taxes Expense | 414 | |||
| Social Security Tax Payable | 124 | |||
| Medicare Tax Payable | 290 | |||
Answer: B
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