Question

The following totals for the month of April were taken from the payroll records of Kingbird Company. Salaries $88800 FICA taxes withheld 6790 Income taxes withheld 18500 Medical insurance deductions 3300 Federal unemployment taxes 240 State unemployment taxes 1600 The journal entry to record the monthly payroll on April 30 would include a

Answer 1

Answer: A) debit to Salaries and Wages Expense for $88,800

Step-by-step explanation:

When recording the payroll for the month, the gross pay of $88,800 will be debited to the Salaries and Wages expense account.

The relevant deductions are then made which in this case would be FICA taxes, Income taxes withheld and Medical insurance deductions. The unemployment taxes are the responsibility of the employer so will not be deducted.

The Journal entry will therefore be;

Debit Credit

April 30 Salaries and Wages Expense 88,800

FICA Taxes withheld 6,790

Income taxes withheld 18,500

Medical Insurance deductions 3,300

Salaries and Wages Payable 60,210