Use this information to answer the following question. The following totals for the month of September were taken from the payroll register of Meadors Company:
The entry to record the payment of net payroll would include a
A)debit to Salaries Payable for $24,000.
B)debit to Salaries Payable for $15,900.
C)debit to Salaries Payable for $17,000.
D)credit to Cash for $18,100.

Question

Use this information to answer the following question. The following totals for the month of September were taken from the payroll register of Meadors Company:
 The entry to record the payment of net payroll would include a
A)debit to Salaries Payable for $24,000. 
B)debit to Salaries Payable for $15,900. 
C)debit to Salaries Payable for $17,000. 
D)credit to Cash for $18,100.

Quizplus · Accepted Answer

The net payroll is the total amount of salaries earned by employees after deductions have been taken out. In this case, the total amount of gross pay (before deductions) is $24,000, but there are deductions of $6,000 for FICA taxes, $1,800 for federal income taxes, and $300 for union dues. Therefore, the net payroll is $15,900 ($24,000 - $6,000 - $1,800 - $300). To record the payment of net payroll, we need to debit Salaries Payable and credit Cash for the same amount, which is $15,900. Therefore, choice C is the correct answer.

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