The following totals for the month of June were taken from the payroll register of Arcon Company: $$\begin{array} { l r }
\text { Sal aries expense } & \$ 14,000 \
\text { Social security and Medicare taxes withheld } & 1,050 \
\text { Income taxes withheld } & 2,600 \
\text { Retirement savings } & 1,000
\end{array}$$ 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

The following totals for the month of June were taken from the payroll register of Arcon Company: $$\begin{array} { l r } 
\text { Sal aries expense } & \$ 14,000 \
\text { Social security and Medicare taxes withheld } & 1,050 \
\text { Income taxes withheld } & 2,600 \
\text { Retirement savings } & 1,000
\end{array}$$  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

Quizplus · Accepted Answer

The net pay is the amount of salaries expense that is paid to the employees. In this case, the net pay is $9,350 ($14,000 - $1,050 - $2,600 - $1,000). The entry to record the payment of net pay would include a debit to salaries payable for $9,350.

The Following Totals for the Month of June Were Taken