Question

abc grocers uses a separate checking account to pay their employees. the gross pay for the period was $850. however, after deductions were taken out, the net pay for the period was $790. the journal entry to record the issuance of payroll checks to their employees would include:.

Answer 1

The journal entry to record the issuance of payroll checks to employees would include a debit to the Payroll Expenses account for the gross pay, a credit to the Cash account for the net pay, and a credit to the Withholding Taxes Payable account for the deductions taken out.

Step-by-step explanation:

The journal entry to record the issuance of payroll checks to employees would include:

• A debit to the Payroll Expenses account for the gross pay of $850
• A credit to the Cash account for the net pay of $790
• A credit to the Withholding Taxes Payable account for the amount of deductions taken out

This journal entry reflects the expenses incurred by the company for paying its employees, as well as the cash outflow to fulfill those payments. By recording these transactions, the company can accurately track its payroll expenses and maintain proper financial records.