Redmont Company's gross salaries and wages are $30,000,and it withholds $4,500 for income taxes and $2,000 for FICA taxes,the journal entry to record the employees' pay should include a:
A)debit to Salaries and Wages Expense for $23,500.
B)debit to Salaries and Wages Payable for $23,500.
C)credit to Salaries and Wages Payable for $30,000.
D)credit to Salaries and Wages Payable for $23,500.

Question

Quizplus · Accepted Answer

The journal entry would include a debit to Salaries and Wages Expense for $30,000 (gross salaries and wages),a credit to Withheld Income Taxes Payable for $4,500,a credit to FICA Payable for $2,000,and a credit to Salaries and Wages Payable for $23,500 (net pay to employees).

Redmont Company's Gross Salaries and Wages Are $30,000,and It Withholds