th Petite co. pays its employees twice a month, on the 7 and the 21". On June 21, Boise Co. paid employee salaries of $7,000. This transaction would Select one: a. be recorded by a $7,000 debit to Salaries and Wages Payable and a $7,000 credit to Salaries and Wages Expense b. increase owner's equity by $7,000. C. decrease net income for the month by $7,000. d. decrease the balance in Salaries and Wages Expense by $7,000

th Petite co. pays its employees twice a month, on the 7 and the 21". On June 21, Boise Co. paid employee salaries of $7,000. This transaction would Select one: a. be recorded by a $7,000 debit to Salaries and Wages Payable and a $7,000 credit to Salaries and Wages Expense b. increase owner's equity by $7,000. C. decrease net income for the month by $7,000. d. decrease the balance in Salaries and Wages Expense by $7,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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[The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross Pay through August 31 Gross Pay for September a. $ 6,000 $ 1,500 b. 2,000 2,100 c. 132,900 9,500 Exercise 11-9 (Algo) Payroll-related journal entries LO P3 Assuming situation (a), prepare the employer’s September 30 journal entry to record the employer’s payroll taxes expense and its related liabilities. Record the employer's September 30 payroll taxes expense and its related liabilities. Note: Enter debits before credits. Date General Journal Debit Credit September 30 Payroll taxes expense FICA—Social security taxes payable FICA—Medicare taxes payable Federal…
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