According to a summary of the payroll of Scotland Company, total salaries were $500,000.  Assume that social security taxes are payable at a 6% rate and Medicare taxes are payable at a 1.5% rate with no maximum earnings. Federal income tax withheld was $98,000.  Also, $15,000 was subject to state (5.4%) and federal (0.8%) unemployment taxes.  The journal entry to record accrued salaries would include a ​ Select one: a. debit to Salaries Payable of $365,250 b. credit to Salaries Payable of $364,500 c. debit to Salaries Expense of $364,500 d. credit to Salaries Expense of $365,250

College Accounting (Book Only): A Career Approach
12th Edition
ISBN:9781305084087
Author:Cathy J. Scott
Publisher:Cathy J. Scott
Chapter7: Employee Earnings And Deductions
Section: Chapter Questions
Problem 6E: On January 21, the column totals of the payroll register for Great Products Company showed that its...
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According to a summary of the payroll of Scotland Company, total salaries were $500,000.  Assume that social security taxes are payable at a 6% rate and Medicare taxes are payable at a 1.5% rate with no maximum earnings. Federal income tax withheld was $98,000.  Also, $15,000 was subject to state (5.4%) and federal (0.8%) unemployment taxes.  The journal entry to record accrued salaries would include a

Select one:
a. debit to Salaries Payable of $365,250
b. credit to Salaries Payable of $364,500
c. debit to Salaries Expense of $364,500
d. credit to Salaries Expense of $365,250
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