The following totals for the month of June were taken from the payroll register of Arcon Company: The entry to record the payment of net pay would include a
A) debit to Salaries Payable for $14,000
B) Debit to Salaries Payable for $9,350
C) Credit to Salaries Expense for $9,350
D) Credit to Salaries Payable for $9,350

Question

The following totals for the month of June were taken from the payroll register of Arcon Company:  The entry to record the payment of net pay would include a
A) debit to Salaries Payable for $14,000 
B) Debit to Salaries Payable for $9,350 
C) Credit to Salaries Expense for $9,350 
D) Credit to Salaries Payable for $9,350

Quizplus · Accepted Answer

The entry to record the payment of net pay would include a credit to Salaries Payable for the total net pay amount of $9,350. This is because the employees have earned the salaries and wages, but the company has not yet paid them. Therefore, Salaries Payable is credited to record the obligation to pay employees. Option A is incorrect because it debits Salaries Payable, thus increasing the liability. Option C is incorrect because it credits Salaries Expense, which is used to record the total amount earned by employees, not the amount actually paid. Option B is incorrect because it does not account for the employer's obligation to pay employees their net pay.

The Following Totals for the Month of June Were Taken