According to a summary of the payroll of Scotland Company, total salaries were S

Question

According to a summary of the payroll of Scotland Company, total salaries were S500,000. Assume that social security taxes are payable at a 6% rate and Medicare taxes are payable at a 1.5% rate with no maximum earnings. Federal income tax withheld was S98.000. Also, $15,000 was subject to state (4.2%) and federal (0.8%) unemployment taxes. The journal entry to record accrued salaries would include a debit to Salaries Payable of S365,250 credit to Salaries Payable of S364,500 debit to Salaries Expense of $364,500 credit to Salaries Expense of $365,250

Explanation / Answer

1 Salaries payable = 500000-(500000*6%)-(500000*1.5%)-98000= 364500 Option B is correct 25 Debit-Inventory, Credit-Accounts payable Option B is correct 18 Balance sheet should be prepared after after the income statement and retained earnings statement Option C is correct 14 Debit Supplies expense, Credit Supplies

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