Question

The following totals for the month of April were taken from the payroll records of Sage Hill Company.

Answer 1

Answer:

a) debit to Salaries and Wages Expense for $98400.

Explanation:

The Journal entry is shown below:-

Salaries and wages expenses Dr, $98,400

             To FICA tax payable $7,530

             To Federal Income tax payable $20,500

             To Medical Insurance payable $3,700

             To Salaries and wages payable $66,670

(Being monthly payroll on April 30 is recorded)

Therefore, we debited the salary and wages expenses as expenses is increasing while we credited FICA taxes payable, federal income tax payable, medical insurance payable and salaries and wages payable as its increasing the liabilities.

The state unemployment taxes is ignored as it is not relevant