The following totals for the month of June were taken from the payroll register of Arcon Company: Salaries expense
$14,000
Social security and Medicare taxes withheld
1,050
Income taxes withheld
2,600
Retirement savings
1,000
The entry to record the payment of net pay would include a
A) debit to salaries payable for $14,000
B) debit to salaries payable for $9,350
C) credit to salaries expense for $9,350
D) credit to salaries payable for $9,350

Question

Quizplus · Accepted Answer

The net pay is the amount of salaries expense that is paid to the employees after withholding taxes and retirement savings. The entry to record the payment of net pay would include a debit to salaries payable for the amount of net pay, which is $9,350 ($14,000 - $1,050 - $2,600 - $1,000).

The Following Totals for the Month of June Were Taken