Use this information to answer the following question. The following totals for the month of July were taken from the payroll register of Greene Company:
The entry to record the payment of net payroll would include a
A) debit to Salaries Payable for $24,000.
B) debit to Salaries Payable for $15,900.
C) debit to Salaries Payable for $17,000.
D) credit to Cash for $18,100.

Question

Use this information to answer the following question. The following totals for the month of July were taken from the payroll register of Greene Company:
 The entry to record the payment of net payroll would include a
A) debit to Salaries Payable for $24,000. 
B) debit to Salaries Payable for $15,900. 
C) debit to Salaries Payable for $17,000. 
D) credit to Cash for $18,100.

Quizplus · Accepted Answer

The entry to record the payment of net payroll would include a debit to Salaries Payable for the total gross pay of $17,000 ($15,900 gross pay plus $1,100 FICA taxes withheld). The entry would also include a credit to Cash for the net pay of $15,900 (gross pay minus FICA taxes and federal income taxes withheld).

Use This Information to Answer the Following Question