The following totals for the month of April were taken from the payroll register of Asplend Company. $$\begin{array} { l r }
\text { Salaries and wages } & \$ 72,000 \
\text { FlCA taxes withheld } & 5,508 \
\text { Income taxes withheld } & 15,000 \
\text { Medical insurance deductions } & 2,700 \
\text { Federal unemployment taxes } & 192 \
\text { State unemployment taxes } & 1,296
\end{array}$$ The entry to record the payment of net payroll would include a

Question

The following totals for the month of April were taken from the payroll register of Asplend Company. $$\begin{array} { l r } 
\text { Salaries and wages } & \$ 72,000 \
\text { FlCA taxes withheld } & 5,508 \
\text { Income taxes withheld } & 15,000 \
\text { Medical insurance deductions } & 2,700 \
\text { Federal unemployment taxes } & 192 \
\text { State unemployment taxes } & 1,296
\end{array}$$ The entry to record the payment of net payroll would include a

Quizplus · Accepted Answer

The entry to record the payment of net payroll would include a debit to Salaries and Wages Payable for the total amount of net payroll, which is $48,792 in this case. There is no credit to Cash for $54,300, as this is the total of gross payroll before deductions. Choice A is also incorrect as it only includes the total of federal and state income tax and FICA deductions, but not the actual net payroll amount. Choice C is too low because it only includes the net pay of hourly employees, and does not include the net pay of salaried employees.

The Following Totals for the Month of April Were Taken