Asked by sarai saavedra on May 01, 2024
Verified
The following totals for the month of April were taken from the payroll register of Asplend Company. Salaries and wages $72,000 FICA taxes withheld 5,508 Income taxes withheld 15,000 Medical insurance deductions 2,700 Federal unemployment taxes 192 State unemployment taxes 1,296\begin{array} { l r } \text { Salaries and wages } & \$ 72,000 \\\text { FICA taxes withheld } & 5,508 \\\text { Income taxes withheld } & 15,000 \\\text { Medical insurance deductions } & 2,700 \\\text { Federal unemployment taxes } & 192 \\\text { State unemployment taxes } & 1,296\end{array} Salaries and wages FICA taxes withheld Income taxes withheld Medical insurance deductions Federal unemployment taxes State unemployment taxes $72,0005,50815,0002,7001921,296 The journal entry to record the monthly payroll on April 30 would include a
A) debit to Salaries and Wages Expense for $72000.
B) credit to Salaries and Wages Payable for $72000.
C) debit to Salaries and Wages Payable for $72000.
D) debit to Salaries and Wages Expense for $51000.
Salaries And Wages Expense
The total amount spent by a business on employee salaries and wages before deductions during a given period.
Monthly Payroll
Monthly payroll refers to the total amount of wages or salaries paid by a business to its employees on a monthly basis, including deductions and taxes.
FICA Taxes Withheld
Amounts deducted from employees' paychecks to cover their portion of Social Security and Medicare taxes as required by the Federal Insurance Contributions Act.
- Skilled in performing accurate calculations and maintaining records for payroll and payroll tax accruals and payments.
Verified Answer
JR
Jonah RuskinMay 02, 2024
Final Answer :
A
Explanation :
BThe correct journal entry to record the monthly payroll includes debiting Salaries and Wages Expense for the total amount of salaries and wages ($72,000) to recognize the expense. Then, you credit Salaries and Wages Payable for the same amount ($72,000) to recognize the liability to pay these amounts.
Learning Objectives
- Skilled in performing accurate calculations and maintaining records for payroll and payroll tax accruals and payments.