Use this information to answer the following question. Baker Company has the following information for the pay period of January 1-15,2010.Payment occurs on January 20.
$\begin{array}{lrlr}
\text { Gross payroll } & \$ 16,000 & \text { Federal income taxes withheld } & \$ 1,800 \
\text { Social security and Medicare rate } & 7.65 \% & \text { Federal unemployment tax rate } & .8 \%\
\
\text { State unemployment tax rate}&5.4 \%
\end{array}$

The entry to record the payroll would include a

Question

Use this information to answer the following question. Baker Company has the following information for the pay period of January 1-15,2010.Payment occurs on January 20.
$\begin{array}{lrlr}
\text { Gross payroll } & \$ 16,000 & \text { Federal income taxes withheld } & \$ 1,800 \
\text { Social security and Medicare rate } & 7.65 \% & \text { Federal unemployment tax rate } & .8 \%\
\
\text { State unemployment tax rate}&5.4 \%
\end{array}$

The entry to record the payroll would include a

Quizplus · Accepted Answer

The entry to record payroll would include a debit to Salaries Expense for the gross payroll, as this is the amount earned by the employees during the pay period. The entry would also include credits to various payroll taxes (such as Federal Income Tax and FICA tax) and liabilities (such as State Unemployment Tax Payable and Employee Income Tax Payable). Finally, there would be a credit to Cash for the net amount paid to the employees, which is the gross payroll minus all deductions and taxes. Therefore, options A and B are incorrect, and option C only addresses the amount paid to the employees but not the gross payroll.

Use This Information to Answer the Following Question The Entry to Record the Payroll Would Include a A)

Use This Information to Answer the Following Question The Entry to Record the Payroll Would Include a
A)