The following totals for the month of June were taken from the payroll register of Arcon Company: 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:  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 entry to record the payment of net pay would include a credit to Salaries Payable for the amount of $9,350, which represents the total amount of salaries earned by the employees during the month of June. Since the salaries have already been accrued as an expense in the month of June, there is no need to credit Salaries Expense again. Instead, the debit entry would be made to Cash, reflecting the amount of net pay actually paid to the employees after deductions for taxes, insurance, etc.

The Following Totals for the Month of June Were Taken