According to a summary of the payroll of Scotland Company, total salaries were $500,000. Assume that social security taxes are payable at a 6% rate and Medicare taxes are payable at a 1.5% rate with no maximum earnings. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (5.4%) and federal (0.8%) unemployment taxes. The journal entry to record accrued salaries would include a

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Salaries Payable = Gross pay - (Federal income tax + Social security tax + Medicare tax) = $500,000 - [$98,000 + ($500,000 × 6.0%) + ($500,000 × 1.50%)] = $364,500
The journal entry to record the accrued salaries would include a credit to Salaries Payable of $364,500.

According to a Summary of the Payroll of Scotland Company