Question

The following totals for the month of June were taken from the payroll register of Arcon Company.

Salaries expense: $14,000
Social security and Medicare taxes withheld: $1,050
Income taxes withheld: $2,600
Retirement savings: $1,000
The entry to record the payment of net pay would include a:
a. debit to salaries payable for $14,000
b. debit to salaries payable for $9,350
c. credit to salaries expense for $9,350
d. credit to salaries payable for $9,350

Answer 1

To record the payment of net pay for Arcon Company, a credit to salaries payable for $9,350 should be included, which is the salary expense minus the various withholdings and deductions.

Step-by-step explanation:

The entry to record the payment of net pay would include a debit to salaries payable for $9,350. This is because the total amount that needs to be paid to employees after deducting various expenses is $9,350.

The entry to record the payment of net pay would include a credit to salaries payable for $9,350. This is calculated by taking the salaries expense of $14,000 and subtracting social security and Medicare taxes withheld ($1,050), income taxes withheld ($2,600), and retirement savings ($1,000). Therefore, the correct answer is d. credit to salaries payable for $9,350.