Question

The following totals for the month of April were taken from the payroll records of Kingbird Company. Salaries $88800 FICA taxes withheld 6790 Income taxes withheld 18500 Medical insurance deductions 3300 Federal unemployment taxes 240 State unemployment taxes 1600 The journal entry to record the monthly payroll on April 30 would include a

Answer 1

Answer: A) debit to Salaries and Wages Expense for $88,800

Explanation:

When recording the payroll for the month, the gross pay of $88,800 will be debited to the Salaries and Wages expense account.

The relevant deductions are then made which in this case would be FICA taxes, Income taxes withheld and Medical insurance deductions. The unemployment taxes are the responsibility of the employer so will not be deducted.

The Journal entry will therefore be;

                                                                               Debit                    Credit

April 30 Salaries and Wages Expense              88,800

              FICA Taxes withheld                                                            6,790

              Income taxes withheld                                                         18,500

              Medical Insurance deductions                                            3,300

              Salaries and Wages Payable                                               60,210