Question

The following totals for the month of April were taken from the payroll register of Magnum Company. Salaries $12,000 Social Security & Medicare taxes withheld 900 Social Security & Medicare taxes 900 Federal Income taxes withheld 2,500 Federal unemployment taxes 30 State unemployment taxes 210 The journal entry to record the monthly net payroll due to employees on April 30 would include a Select one: a. debit to Salaries Expense for $7,460 b. debit to Salaries Payable for $7,460 c. debit to Salaries Payable for $8,600 d. credit to Salaries Payable for $8,600

Answer 1

Answer:

d. credit to Salaries Payable for $8,600

Explanation:

The journal entry would be as follows.

Magnum Company

Payroll Journal

Particulars                            Debit                    Credit

Salaries                       $12,000  Debit

Federal Income taxes withheld                       2,500 Credit

Social Security & Medicare taxes withheld      900 Credit

Salaries Payable                                               $8,600 Credit

Unemployment taxes are paid by the employer . They are not deducted from the employees' wages . They include both the federal and state taxes.Social Security & Medicare taxes withheld $ 900 include the  Social Security & Medicare taxes  $ 900.