If a company's gross salaries and wages are $12,000,and it withholds $1,800 for income taxes and $800 for FICA taxes,the journal entry to record the employees' pay should include a:
A) debit to Salaries and Wages Expense for $9,400.
B) debit to Salaries and Wages Payable for $9,400.
C) credit to Salaries and Wages Payable for $12,000.
D) credit to Salaries and Wages Payable for $9,400.

Question

Quizplus · Accepted Answer

The journal entry should include a debit to Salaries and Wages Expense for the amount paid to employees after deducting income and FICA taxes, which is $9,400 ($12,000 - $1,800 - $800). Additionally, there should be a credit to Salaries and Wages Payable for the same amount since the company has incurred an obligation to pay its employees. Therefore, choice D is the correct answer.

If a Company's Gross Salaries and Wages Are $12,000,and It