Enchanted Creations Has the Following Data in Its Federal Withholding

question 14

Multiple Choice

Enchanted Creations has the following data in its Federal withholding tax payable General Ledger account: ACCOUNT Federal withholding tax payable ACCOUNT NO. 220
BALANCE
DATE DESCRIPTION POST REF. DEBIT CREDIT DEBIT CREDIT
Apr 16 J23 16,495 32,990
Apr 30 J27 16,495
What is the balance of the account as of April 30?

• A) Debit $49,485
• B) Credit $16,495
• C) Debit $16,495
• D) Credit $49,485

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Definitions:

Recording Business Transactions

The process of documenting the financial activities of a business in accounting records according to established principles.

Operating Cycle

Average time it takes to buy and sell merchandise and then collect accounts receivable.

Financial Statements

Financial statements are formal records that outline the financial activities and condition of a business, entity, or individual, encompassing the balance sheet, income statement, and cash flow statement.

General Journal

The primary bookkeeping record in double-entry accounting, used to record all transactions by date, before they are posted to individual accounts in the general ledger.