If a company's gross wages are $12,000, and it withholds $1,800 for income taxes and $800 for FICA taxes and other deductions, the journal entry to record the employees' pay should include a:
A) debit to Wages Expense for $9,400.
B) debit to Wages Payable for $9,400.
C) credit to Wages Payable for $12,000.
D) credit to Cash for $9,400.

Question

Quizplus · Accepted Answer

The net pay (gross wages minus withholdings) is $9,400, which is the amount paid to employees, so Cash is credited for this amount.

If a Company's Gross Wages Are $12,000, and It Withholds