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 $9,425
C) Credit to Salaries Expense for $9,425
D) Credit to Salaries Payable for $9,425

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 $9,425 
C) Credit to Salaries Expense for $9,425 
D) Credit to Salaries Payable for $9,425

Quizplus · Accepted Answer

The entry to record the payment of net pay would include a credit to Salaries Payable for $9,425, as this is the amount owed to employees for their net pay. A debit would then be made to Cash for the same amount, indicating the actual payment. Salaries Expense has already been recorded for the period through the payroll register, so it is not necessary to make another entry specifically for this expense. Option A is incorrect because it overstated the amount owed to employees by including the full gross pay amount. Option C is incorrect because it does not account for the payment made to employees through Cash.

The Following Totals for the Month of June Were Taken