Mr$.$ Ortega earns a monthly salary of $$8,000.$ Based on Mr$.$Ortega$$s Form W$-4,$ the tax tables require withholding $$900$ per month for income taxes. Mr$.$Ortega has authorized his employer to deduct $$380$ per month for medical insurance and $$30$ per month for a charitable contribution to the Humane Society. Assume a FICA tax rate of $6\%,$ a Medicare tax rate of $1\mathrm{.}5\%,$ and an unemployment tax rate of $6\%$ on the first $$7,000$ of salary earned. Which of the following shows how recognizing the accrued payroll tax expense would affect the employer$$s financial statement?

Multiple Choice

Balance Sheet Income Statement Statement of Cash Flows

Assets $=$ Liabilities $+$ Stockholders$$ Equity Revenue $$ Expenses $=$ Net Income

$$ NA $$ NA $+$ NA

Balance Sheet Income Statement Statement of Cash Flows

Assets $=$ Liabilities $+$ Stockholders$$ Equity Revenue $$ Expenses $=$ Net Income

NA $+$ NA $+$FA

Balance Sheet Income Statement Statement of Cash Flows

Assets $=$ Liabilities $+$ Stockholders$$ Equity Revenue $$ Expenses $=$ Net Income

NA $+$ NA $+$ NA

Balance Sheet Income Statement Statement of Cash Flows

Assets $=$ Liabilities $+$ Stockholders$$ Equity Revenue $$ Expenses $=$ Net Income

$$ NA $$ NA $+$OA