FINANCIAL ACCT.-W/ETEXTBOOK
10th Edition
ISBN: 9781119428985
Author: Weygandt
Publisher: WILEY
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Question
Chapter I, Problem 1Q
To determine
Payroll
Payroll is a term which relates to both wages and salaries of employee.
Gross pay
An employee’s total compensation earned is called as gross pay.
Net pay
Employee’s total compensation earned minus payroll deduction is called as net pay.
To find: The difference between gross pay and net pay.
Expert Solution
Explanation of Solution
Difference between gross pay and net pay is shown as follows:
| Gross pay | Net pay |
| Employee actual earnings are called as gross pay. | Gross pay minus payroll deductions (FICA taxes, Federal income taxes and State |
Table (1)
To determine
To find: Which amount should a company record as wages and salaries expense.
Expert Solution
Explanation of Solution
Gross pay should be recorded as wages and salaries expense.
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Chapter I Solutions
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