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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

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BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

Assume that the employees in Exercise 7–7 are paid from the company’s regular bank account (check numbers 981 and 982). Prepare the entry to record and pay the payroll in general journal form, dated September 30.

To determine

Prepare journal entry to record the necessary transaction.

Explanation

Payroll:

Payroll refers to the total amount that is required to be paid by the company to its employees during a week, month or other period. It is the financial record of the wages and bonus, net pay, salary and deductions of a company’s employees.

Prepare journal entry to record the necessary transaction.

DateAccount Title and explanationDebit ($)Credit ($)
September 30Salaries expense6,384.00 
 Employee federal income tax payable 487.97
 FICA-Social Security taxes payable  395.81
 FICA-Medicare Taxes payable 92.57
 Employee’s State income tax payable 97.60
 Charity payable 132.00
 Cash (Person B) 2,957.58
 Cash (Person R) 2,220.47
 (To record issued checks 981 and 982 for the month  September)  

Table (1)

  • Salaries expense is an expense account and it is increased...

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