On October 15, Eco Brewers had a balance of $4,390 in its Social Security tax payable account. It posted an additional $4,390 on its October 31 pay date. Since Eco Brewers is a monthly schedule depositor, what entry should appear on November 15 for the remittance of the month's Social Security taxes?
A)Credit $8,780
B)Debit $4,390
C)Credit $4,390
D)Debit $8,780

Question

Quizplus · Accepted Answer

The correct entry for remitting the month's Social Security taxes would be a debit of $8,780, which represents the total amount due ($4,390 from the beginning of the month plus an additional $4,390 posted on the pay date). This debit entry decreases the liability account for Social Security tax payable.

On October 15, Eco Brewers Had a Balance of $4,390