The journal entry to record salaries earned by employees will debit:
A)Salary Expense and credit Salary Payable for net pay.
B)Salary Expense and credit Salary Payable for gross pay.
C)Salary Expense for gross pay, credit FICA Tax Payable, credit Employee Income Tax Payable and credit Salary Payable for net pay.
D)Salary Expense for net pay, debit FICA Tax Payable, debit Employee Income Tax Payable, and credit Salary Payable for gross pay.

Question

Quizplus · Accepted Answer

The correct entry debits Salary Expense for the total gross pay and credits various liabilities, including FICA Tax Payable and Employee Income Tax Payable, with the remainder credited to Salary Payable for the net pay.

The Journal Entry to Record Salaries Earned by Employees Will