Ramon Gonzalez's Gross Pay for the Week Was $700

question 49

Multiple Choice

Ramon Gonzalez's gross pay for the week was $700.He had deductions of $85 for federal income tax,$43.40 for social security tax,$10.15 for Medicare tax as well as $5 for union dues.The journal entry to record his salary would include:

• A) a debit to Employee Income Tax Payable for $85
• B) a credit to Employee Income Tax Payable for $85
• C) a debit to Salaries Payable for $700
• D) a debit to Salaries Expense for $556.45

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Definitions:

Consumer Goods

Products and commodities bought and used by individuals and households for personal consumption.

Capital Goods

Long-lasting goods that are used in the production of other goods and services but are not themselves part of the end product.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on when choosing one option over another.

Socialistic Economies

Economic systems where the production and distribution of goods and services are controlled by the state, aiming for equal wealth distribution and reduction of economic inequalities.