The amount Last Call Inc. would recognize as salaries payable on March 7, 2020, is $81,525. This is calculated by subtracting withholdings and deductions from the weekly payroll of $150,000, considering the one-week delay in payment for employees.
Option B is correct.
To determine the amount that Last Call Inc. would recognize as salaries payable on March 7, 2020, we need to consider the weekly payroll for the week of March 1 to March 7, 2020, and the fact that employees are paid one week after the week worked.
The weekly payroll amount is $150,000. Since the payment is made one week after the week worked, the salaries payable on March 7, 2020, would include the payroll for the week of March 1 to March 7, 2020.
Therefore, the recognized salaries payable on March 7, 2020, would be the weekly payroll amount of $150,000.
However, it's essential to subtract any withholdings or deductions that are not part of the net salary payable to employees. From the information provided:
Withholdings taxes payable (federal and state): $33,000
Federal unemployment taxes payable: $900
State unemployment taxes payable: $8,100
FICA taxes payable (employee share): $11,475
Health care premiums payable: $10,000
Union dues payable: $5,000
Deductions and withholdings total $68,475.
Subtracting this total from the weekly payroll:
$150,000 - $68,475 = $81,525