Entity A pays salaries on a bi-monthly basis. Entity A has 10 employees, each earning ₱20,000 per month. During the month of April 20x1, none of the employees were absent, late or have rendered overtime service. Which of the following is correct regarding the timing of recognition and the amount of salaries expense recognized on the first payday in the month of April 20x1?

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Q: Journalize the transactions shown

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A: a.

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Q: On January 15, the end of the first pay period of the year, North Company's employees earned $32,000…

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Q: Prepare the journal entry to record North Company's January 15 salaries expense and related…

A: FICA Social Security Tax Payable = $32,000 x 6.2% = $1,984FICA Medicare Tax Payable = $32,000 x…

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A: Tax: It is the compulsory payment that arises on income of individual, corporate and other entities.

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Q: In 20-- the annual salaries paid each of the officers of Perez, Inc., follow. The officers are paid…

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Q: Urban Fit Corp Fit ation paid salaries and wages of $71,900 to its employees for the month. Of this…

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Q: During the month of March, Oriole Company's employees earned wages of $80,000. Withholdings related…

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Q: The monthly and hourly wage schedule for the employees of Quirk, Inc., follows. No employees are due…

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Q: During the month of May 2022, Kingsway Ltd's employees earned total salaries and wages of $50,000.…

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Q: An employee earns $36 per hour and 1.75 times that rate for all hours in excess of 40 hours per…

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Q: BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its…

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Payroll Entries

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll processes form the bedrock of every organization as it contains sensitive information on the ‘wage and paycheck’ portion of the company’s strength—its employees. The organization needs to keep a track of the employees currently on the payroll, the net payout for the company, the record of transactions related to the employees including deductions and payroll taxes to identify the liability and its effect on the balance sheet (and other financial statements). Payroll records also include qualitative factors such as the conduct of the employee.