Question

The journal entry to record the payroll for a period will include a credit to Salaries and Wages Payable for the gross a) pay less taxes payable. b) amount of all paychecks issued. Oc) amount less all payroll deductions. d) pay less voluntary deductions.

Answer 1

The correct answer is c) amounts less all payroll deductions

Supporting explanations:

The journal entry to record the payroll is as follows:

Accounts Titles and Explanations	Debit	Credit
Salaries and Wages Expenses	$5,000
FICA Taxes Payable		$200
SUTA Taxes Payable		$150
Medicare Taxes Payable		$50
Salaries and Wages Payable ($5,000 - $200 - $150 - $50)
(To record salaries and wages expense)

The above figures are taken as an example.

In the above journal entry, the salaries and wages payable is credited after deducting the taxes payable, hence, the option c) amounts less all payroll deductions.