The following totals for the month of April were taken from the payroll records of Noll Company. Salaries $60,000
FICA taxes withheld 4,590
Income taxes withheld 12,500
Medical insurance deductions 2,250
Federal unemployment taxes 160
State unemployment taxes 1,080
The entry to record the payment of net payroll would include a
A) debit to Salaries and Wages Payable for $39,580.
B) debit to Salaries and Wages Payable for $40,660.
C) debit to Salaries and Wages Payable for $36,070.
D) credit to Cash for $45,250.

Question

Quizplus · Accepted Answer

The net payroll is calculated by subtracting all withholdings from the total salaries: $60,000 - $4,590 - $12,500 - $2,250 = $40,660. Therefore, the entry to record the payment of net payroll would include a debit to Salaries and Wages Payable for $40,660.

The Following Totals for the Month of April Were Taken