Question

The following totals for the month of June were taken from the payroll register of Arcon Company: Salaries expense $14,000 Social security and Medicare taxes withheld 1,050 Social security and Medicare taxes 1,050 Federal Income taxes withheld 2,600 Federal Unemployment Tax 210 The entry to record the payment of net pay would include a Select one: a. debit to Salaries Payable for $10,350 b. credit to Salaries Payable for $10,350 c. debit to Salaries Expense for $14,000 d. debit to Salaries Payable for $14,000

Answer 1

Answer:

Option B is the correct answer,a credit to salaries payable for $10,350

Explanation:

First of all,the net payment of salaries of Arcon Company equal the gross salaries expenses of $14,000 minus the deductions except the federal unemployment tax of $210

Net pay=$14,000-$1,050-$2,600=$10,350

In to record the salaries,the salaries expense account would be debited with $14,000 while the social security and medical taxes payable and federal income taxes payable account are credited with $1,050 and $2,600 respectively.

The net pay of $10,350 is credited to salaries payable in expectation of actual payment