Homework SourseCHAPTER 11CURRENT LIABILITIES AND PAYROLL OPreious Page 7 of
CHAPTER 11-CURRENT LIABILITIES AND PAYROLL OPreious Page 7 of 18 ??? Next O The folowing totalsfor the month of J?y were taken fromthepnrol register of Lakeside Company. Socal seourity and Medicare taxes withhold Employeen fedieral Income tacs withheid Insurince deductions The journal entry to recond the monthly payroll on July 31 would include a Oacredit to Salaries Expense for $16,000 O b. debit to Salaries Expense for $16,000 O e debit to Salaries Payable for $11,902 O d. debit to Salaries Payable for $12,150 829 3 4 5
Solution
The Journal entry to record the payroll expense is
Therefore Option B is correct, that is, salaries expense will be debited by $16000, being the gross amount
| July | Salaries expense | $16000 | |
| Social security and medicare taxes payable | $900 | ||
| Federal Income tax payable | $2500 | ||
| Medical Insurance payable | $450 | ||
| Salaries Payable | $12150 |
