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:

Minimum Denomination

The smallest value of a security or financial instrument that can be purchased or traded.

Mortgage Pass-through Securities

Financial instruments that pool together home mortgage loans and allow investors to receive payments based on the underlying mortgages' interest and principal repayments.

Poor Credit Ratings

Indicates a low assessment of creditworthiness, suggesting that the individual or entity is a higher risk to lenders.

Relatively Safe

This term refers to something considered to be safe within a certain context or comparison but not absolutely risk-free.