Supermeg Dry Cleaners had the following payroll data for its May 14 pay date: $$\begin{array} { | l | l | l | r | r | r | }
\hline \text { May } & 14 & \text { Wages and salaries expense } & 522 & \$ 187,327.54 & \
\hline & & \text { Federal withholding tax payable } & 220 & & \$ 31,845.68 \
\hline & & \text { Social Sec urity tax payable } & 221 & & 10,769.95 \
\hline & & \text { Medicare tax payable } & 222 & & 2,518.78 \
\hline & & 401 ( \text { k) contributions payable } & 223 & & 6,656.46 \
\hline & & \text { Health Insurance pay able } & 224 & & 13,618.71 \
\hline & & \text { Union Dues payable } & 227 & & 4,683.19 \
\hline & & \text { Wages and salaries payable } & 226 & & 117,334.77 \
\hline &&&\
\hline \text { May } & 14 & \text { Wages and salaries payable } & 226&117,334.77 & \
\hline & & \text { Cash } & 101& &117,334.77 \
\hline
\end{array}$$ When the firm remits its health insurance premium for this pay date,what is the General Journal entry?

Question

Supermeg Dry Cleaners had the following payroll data for its May 14 pay date: $$\begin{array} { | l | l | l | r | r | r | } 
\hline \text { May } & 14 & \text { Wages and salaries expense } & 522 & \$ 187,327.54 & \
\hline & & \text { Federal withholding tax payable } & 220 & & \$ 31,845.68 \
\hline & & \text { Social Sec urity tax payable } & 221 & & 10,769.95 \
\hline & & \text { Medicare tax payable } & 222 & & 2,518.78 \
\hline & & 401 ( \text { k) contributions payable } & 223 & & 6,656.46 \
\hline & & \text { Health Insurance pay able } & 224 & & 13,618.71 \
\hline & & \text { Union Dues payable } & 227 & & 4,683.19 \
\hline & & \text { Wages and salaries payable } & 226 & & 117,334.77 \
\hline &&&\
\hline \text { May } & 14 & \text { Wages and salaries payable } & 226&117,334.77 & \
\hline & & \text { Cash } & 101&  &117,334.77 \
\hline
\end{array}$$ When the firm remits its health insurance premium for this pay date,what is the General Journal entry?

Quizplus · Accepted Answer

The total amount of health insurance payable is given as $13,618.71 in the payroll data. Therefore, the General Journal entry would be to debit Health Insurance Payable for $13,618.71 and credit Cash for the same amount when the firm remits its health insurance premium. Option A and B are incorrect as they involve incorrect amounts. Option D is incorrect as it involves a double payment of the health insurance premium.

Supermeg Dry Cleaners Had the Following Payroll Data for Its