If a company's gross salaries are $12,000,and it withholds $1,800 for income taxes and $800 for Employment Insurance and other deductions,the journal entry to record the employees' pay should include a:
A)debit to Salaries Expense for $9,400.
B)debit to Salaries Payable for $9,400.
C)credit to Salaries Payable for $12,000.
D)credit to Cash for $9,400.

Question

Quizplus · Accepted Answer

The net pay to employees is $9,400 ($12,000 - $1,800 - $800), so the journal entry should credit Cash for $9,400, which is the amount actually paid to employees.

If a Company's Gross Salaries Are $12,000,and It Withholds $1,800