According to a Summary of the Payroll of Scotland Company

question 82

Multiple Choice

According to a summary of the payroll of Scotland Company, $450,000 was subject to the 6.0% social security tax and $500,000 was subject to the 1.5% Medicare tax. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (4.2%) and federal
(0) 8%) unemployment taxes. The journal entry to record accrued salaries would include a

• A) debit to Salaries Payable of $450,000
• B) credit to Salaries Payable of $500,000
• C) debit to Salaries Expense of $500,000
• D) credit to Salaries Expense of $450,000

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Definitions:

Consolidate

In financial context, to combine assets, liabilities, and other financial items of two or more entities into one.

Consolidated Balance Sheet

A financial statement that aggregates all assets, liabilities, and equity of a parent company and its subsidiaries, presenting the financial position of the entire group.

Subsidiary

A company that is controlled by another company, referred to as the parent company.

Loaned

Refers to money or assets that have been lent to another party under an agreement to be repaid, often with interest.