Question

Margaret Company had the following totals for the month of December for the payroll records: Salaries:...

Margaret Company had the following totals for the month of December for the payroll records:

Salaries: $30,000

FICA taxes withheld: $2,295

Income taxes withheld: $6,600

Medical insurance deductions: $1,200

The journal entry to record the monthly payroll on April 30 would include a (***PLEASE INCLUDE FULL JOURNAL ENTRY AND EXPLAIN WHY THE ANSWER IS WHAT IT IS):

a) debit to Salaries and Wages Expense for $30,000

b) credit to Salaries and Wages Expense for $30,000

c) debit to Salaries and Wages Payable for $30,000

d) debit to Salaries and Wages Expense for $19,905

Homework Answers

Answer #1

The following journal entry will be prepared to record the monthly payroll:

Account Titles and Explanation Debit Credit
Salaries and Wages Expense $30,000
      FICA Taxes Payable $2,295
      Income Taxes Payable $6,600
      Medical Insurance Payable $1,200
      Salaries and Wages Payable (30,000 - 2,295 - 6,600 - 1,200) $19,905

From the above journal entry to record the monthly payroll, it is clear that the entry will include a debit to Salaries and Wages Expense for $30,000.

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