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 on January 20 would be a debit to
A) Salaries Payable and a credit to Cash.
B) Salaries Payable and a credit to Salaries Expense.
C) Salaries Expense and a credit to Cash.
D) Salaries Expense and a credit to Salaries Payable.

Question

Quizplus · Accepted Answer

The entry on January 20 would be a debit to Salaries Payable and a credit to Cash because the company is paying the salaries that were previously recorded as a liability (Salaries Payable).

Use This Information to Answer the Following Question The Entry on January 20 Would Be a Debit to Has