Use this information to answer the following question. The following totals for the month of November were taken from the payroll register of Levine Company:
The entry to record the payment of net payroll would include a
A) debit to Salaries Payable for $12,000.
B) debit to Salaries Payable for $7,950.
C) debit to Salaries Payable for $8,500.
D) credit to Cash for $9,050.

Question

Use this information to answer the following question. The following totals for the month of November were taken from the payroll register of Levine Company:
 The entry to record the payment of net payroll would include a
A) debit to Salaries Payable for $12,000. 
B) debit to Salaries Payable for $7,950. 
C) debit to Salaries Payable for $8,500. 
D) credit to Cash for $9,050.

Quizplus · Accepted Answer

The net payroll for November can be calculated by subtracting the total deductions from the total earnings:
$12,000 - $2,200 - $300 - $1,000 - $1,050 = $7,950
Therefore, the entry to record the payment of net payroll would include a debit to Salaries Payable for $7,950.

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