Use this information to answer the following question. Baker Company has the following information for the pay period of January 1-15.Payment occurs on January 20.
The entry to record the payroll would include a
A) debit to Salaries Payable for the net amount.
B) credit to State Unemployment Tax Payable.
C) debit to Salaries Expense for the amount paid to the employees.
D) debit to Salaries Expense for the gross payroll.

Question

Use this information to answer the following question. Baker Company has the following information for the pay period of January 1-15.Payment occurs on January 20.
 The entry to record the payroll would include a
A) debit to Salaries Payable for the net amount. 
B) credit to State Unemployment Tax Payable. 
C) debit to Salaries Expense for the amount paid to the employees. 
D) debit to Salaries Expense for the gross payroll.

Quizplus · Accepted Answer

The entry to record the payroll would include a debit to Salaries Expense for the gross payroll amount because this is the amount earned by the employees. It does not include any deductions. Then, the entry would include a credit to cash or a liability account for the total amount withheld from employees for taxes, benefits, and other deductions. This entry records the amount the company must pay to employees after deductions.

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