According to a summary of the payroll of Scotland Company, $450,000 was subject to the 6.0% social security tax and $500,000 was subject to the 1.5% Medicare tax. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (4.2%) and federal (0.8%) unemployment taxes. The journal entry to record accrued salaries would include a ? a. credit to Salaries Payable of $364,500 b. debit to Salaries Expense of $364,500 c. credit to Salaries Expense of $313,000 d. debit to Salaries Payable of $313,000
According to a summary of the payroll of Scotland Company, $450,000 was subject to the 6.0% social security tax and $500,000 was subject to the 1.5% Medicare tax. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (4.2%) and federal (0.8%) unemployment taxes. The journal entry to record accrued salaries would include a ? a. credit to Salaries Payable of $364,500 b. debit to Salaries Expense of $364,500 c. credit to Salaries Expense of $313,000 d. debit to Salaries Payable of $313,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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According to a summary of the payroll of Scotland Company, $450,000 was subject to the 6.0% social security tax and $500,000 was subject to the 1.5% Medicare tax. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (4.2%) and federal (0.8%)
a. credit to Salaries Payable of $364,500
b. debit to Salaries Expense of $364,500
c. credit to Salaries Expense of $313,000
d. debit to Salaries Payable of $313,000
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