Gross salaries are $3,000. FICA Social Security Taxes Payable are $148; FICA Med

Question

Gross salaries are $3,000. FICA Social Security Taxes Payable are $148; FICA Medicare Taxes Payable are $48; Employee Federal Income Taxes Payable are $320.

Which of the following statements about the journal entry to record accrued payroll is correct?

A. The journal entry will include a Debit to Salaries Expense for $3,000 and a Credit to Accrued Salaries Payable for $2,484.

B. The journal entry will include a Debit to FICA Social Security Taxes Payable for $148.

C. The journal entry will include a Credit to Salaries Expense for $3,000 and a Debit to Accrued Salaries Payable for $2,484.

D. The journal entry will include a Credit to Federal Income Taxes Payable for $320 and a Debit to Accrued Salaries Payable for $2,484.

I know the answer is A, but can you explain to me why? Thank you.

Explanation / Answer

Correct Answer is A.

The Journal Entry to be passed:

Salaries Exp A/c                                                    Dr. 3000 To FICA Social security Tax Payble A/c 148 To FICA Medicare Taxes Payble A/c 48 To Employee Federal I Tax Payble A/c 320 To Salary Payable A/c 2484

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