Art Parrish, the sole employee of Parrish Sales, has gross salary for March of $4 000. He is subject to income tax at a rate of 18%. Art has a deduction of $320 for health insurance and $80 for voluntary superannuation. The first entry in the payroll cycle to record salary expense should include which of the following?

Question

Quizplus · Accepted Answer

The first entry in the payroll cycle to record salary expense should include a credit to Salary payable, as this represents the liability for the salary owed to the employee before any deductions are made.

Art Parrish, the Sole Employee of Parrish Sales, Has Gross