Question

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

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.