Payroll is debited and Wages Payable is credited to:
A)Pay the payroll taxes.
B)Record the payroll.
C)Pay the payroll.
D)Distribute the payroll.

Question

Quizplus · Accepted Answer

When payroll is recorded, the payroll expenses are debited and the liability for unpaid wages is credited to Wages Payable account. This is because the employees have earned the wages but have not been paid yet. The entry for paying the payroll taxes would involve debiting the Payroll Tax Expense account and crediting the appropriate tax payable account. The entry for paying the payroll would involve debiting the Wages Payable account and crediting the Cash account. The entry for distributing the payroll would involve debiting the Wages Expense account and crediting the Cash account.

Payroll Is Debited and Wages Payable Is Credited To