Wolfpack Inc., a calendar year-end company, pays its employees on the last day of the month for work performed during the month. Gross salaries for the month of April are $20,000. Wolfpack withholds the following amounts from its employees’ paychecks for this pay period: federal income tax of $4,000 state income tax of $2,500 FICA tax of $1,530 Tax withholding are not remitted to the proper tax agencies until the 10th of the following month. Required: Answer the following two questions. Note: Do not include decimals or cents in your response. Question #1: The entry to record the payment of salaries on April 30 should include a debit to the "Salaries Expense" account for how much? Answer: Question #2: The entry to record the payment of salaries on April 30 should include a credit to the "Cash" account for how much? Answer:
Wolfpack Inc., a calendar year-end company, pays its employees on the last day of the month for work performed during the month. Gross salaries for the month of April are $20,000. Wolfpack withholds the following amounts from its employees’ paychecks for this pay period:
- federal income tax of $4,000
- state income tax of $2,500
- FICA tax of $1,530
Tax withholding are not remitted to the proper tax agencies until the 10th of the following month.
Required: Answer the following two questions. Note: Do not include decimals or cents in your response.
Question #1: The entry to record the payment of salaries on April 30 should include a debit to the "Salaries Expense" account for how much? Answer:
Question #2: The entry to record the payment of salaries on April 30 should include a credit to the "Cash" account for how much? Answer:
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