Gross earnings for the pay period are $100,000.Required payroll deductions are: Social Security $6,700;Medicare $1,450;Federal Income tax $18,000 and State income tax $3,850.The journal entry to record wages paid includes a:
A)$100,000 credit to Salaries and Wages Payable.
B)$6,700 debit to FICA Payable.
C)$100,000 debit to Salaries and Wages Expense.
D)$70,000 debit to Salaries and Wages Expense.

Question

Quizplus · Accepted Answer

The journal entry would include a debit to Salaries and Wages Expense for $100,000 (gross pay),a credit to Withheld Income Taxes Payable for $21,850 (or $18,000 + $3,850),a credit to FICA Payable for $8,150 (or $6,700 + $1,450),and a credit to Salaries and Wages Payable for $70,000 (net pay).

Gross Earnings for the Pay Period Are $100,000