Question

find total amount payable and deductible 1000*$600= $600,000 1000* indivdual deductions Asset: Cash (-A) -483,200 Liability: Withheld income tax payable +60,900, FICA payable + 45,900, United way payable +10,000. SE: Salaries/wages expense (+E) -600,000 Debit: Salaries/wages expense 600,000 Credit: withheld income 60900, FICA payable 45900, United way payable 10000, Cash 483000

Answer 1

The total amount initially payable to employees is $600,000. After deductions ($60,900 for withheld income tax, $45,900 for FICA, and $10,000 for United Way), the cash paid out is $483,200.

Step-by-step explanation:

The question involves calculating the total amount payable and the deductible on a series of financial transactions related to payroll. Initially, 1,000 employees are multiplied by $600 to get a total salary expense of $600,000. Next, the individual deductions for assets and liabilities are listed, such as Cash with an adjustment of $483,200, and liabilities which include Withheld income tax payable of $60,900, FICA payable of $45,900, and United Way payable of $10,000. Finally, the salary/wages expense is balanced in the books with corresponding debits and credits to reflect the payroll expenses and deductions.

Given this information, the total amount payable to employees would initially be $600,000, but after considering total deductions ($60900 for withheld income tax, plus $45900 for FICA, plus $10000 for United Way contributions), the actual cash paid out would be $483,200. This corresponds to the entry in the asset category as Cash (-A) with the same amount.