Supermeg Dry Cleaners had the following payroll data for its May 14 pay date:

When the firm remits the union dues for this pay period,what is the correct General Journal entry?
A)Debit Cash $6,556.46;Credit Union Dues Payable $4,683.19
B)Debit Union Dues Payable $4,683.19;Credit Cash $4,683.19
C)Debit Cash $4,683.19;Credit Union Dues Payable $4,683.19
D)Debit Union Dues Payable $4,683.19;Credit Cash $6,556.46

Question

Supermeg Dry Cleaners had the following payroll data for its May 14 pay date:

When the firm remits the union dues for this pay period,what is the correct General Journal entry?
A)Debit Cash $6,556.46;Credit Union Dues Payable $4,683.19 
B)Debit Union Dues Payable $4,683.19;Credit Cash $4,683.19 
C)Debit Cash $4,683.19;Credit Union Dues Payable $4,683.19 
D)Debit Union Dues Payable $4,683.19;Credit Cash $6,556.46

Quizplus · Accepted Answer

The correct accounting entry when remitting union dues is to debit the Union Dues Payable account and credit the Cash account. Therefore, the correct entry is:
Debit Union Dues Payable $4,683.19;
Credit Cash $4,683.19. 
Option A is incorrect because the debit amount is greater than the total amount due, resulting in an overpayment. Option C is incorrect because it only reflects the amount of the union dues, but does not show the payment made. Option D is incorrect because it overstates the payment made and implies an incorrect amount of cash spent.

Supermeg Dry Cleaners Had the Following Payroll Data for Its