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 the payroll would include a debit to Salaries Expense for the gross payroll, as this reflects the total amount paid to employees during the period. The entry would also include credits to various liability accounts, such as Federal Income Tax Payable, Social Security Tax Payable, and Medicare Tax Payable, to reflect the amounts withheld from employee paychecks. These liability accounts are not listed as options, but they would be included in the entry. Salaries Payable would be credited for the net amount paid to employees, which is calculated by subtracting the total withholdings from the gross payroll. State Unemployment Tax Payable would be credited separately, as this is a tax that the company must pay on behalf of its employees. However, the question only asks for one debit account, and the most appropriate one is Salaries Expense for 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)