Lila Harrison's is the sole employee of ABC Grocers.Her gross pay for the week was $400.She had deductions of $50 for federal income tax,$25 for social security tax,and $5.80 for Medicare tax.The journal entry to record her salary would include:
A) a debit to Salaries Expense for $319.20
B) a debit to Salaries Expense for $400
C) a debit to Salaries Payable for $319.20
D) a credit to Salaries Payable for $400

Question

Quizplus · Accepted Answer

The journal entry to record Lila's salary would include a debit to Salaries Expense for the full gross pay amount of $400, as this represents the total expense incurred by the company for her salary.

Lila Harrison's Is the Sole Employee of ABC Grocers