CHAPTER 11-CURRENT LIABILITIES AND PAYROLL OPreious Page 7 of 18 ??? Next O The
ID: 2396944 • Letter: C
Question
CHAPTER 11-CURRENT LIABILITIES AND PAYROLL OPreious Page 7 of 18 ??? Next O The folowing totalsfor the month of J?y were taken fromthepnrol register of Lakeside Company. Socal seourity and Medicare taxes withhold Employeen fedieral Income tacs withheid Insurince deductions The journal entry to recond the monthly payroll on July 31 would include a Oacredit to Salaries Expense for $16,000 O b. debit to Salaries Expense for $16,000 O e debit to Salaries Payable for $11,902 O d. debit to Salaries Payable for $12,150 829 3 4 5Explanation / Answer
The Journal entry to record the payroll expense is
Therefore Option B is correct, that is, salaries expense will be debited by $16000, being the gross amount
July Salaries expense $16000 Social security and medicare taxes payable $900 Federal Income tax payable $2500 Medical Insurance payable $450 Salaries Payable $12150