Question

What to do:

Review the journal entries for payroll.

Topic:

There are different journal entries for recording the payroll expenses and obligations of the employer and employee by the business. Please choose one of these (employer or employee) and list those journal entries in general journal form, then provide an explanation for the entry.

Answer 1

In the Books of Employer
Payroll Journal Entry Wage, Payroll and Insurance
1-
date	explanation	debit	credit
	wage expense	1000
	Taxes payable		150
	Insurance payable		100
	wages payable		750
	In this situation wages expenses are debited and liabilities are made payable by the employer
2-	Payroll Journal Entry for Salary Payable
date	explanation	debit	credit
	wages payable	750
	cash		750
	here wages payable are paid by the the employer to the employee
3-	When taxes and other payables are paid by employer
date	explanation	debit	credit
	income tax payable	150
	insurance payable	100
	cash		250
	Here payables are paid by the employer