Zipperle Company Has the Following Payroll Information for the Pay

question 22

Multiple Choice

Zipperle Company has the following payroll information for the pay period ending September 18, 20XX: Gross pay $ 27,894.50
Federal withholding tax $ 3,570.00
Social Security tax $ 1,670.56
Medicare tax $ 390.70
401(k) contributions $ 1,115.78
Health Insurance $ 950.00
Garnishment $ 450.00
Net pay $ 19,747.46
Which items would be debited in the General Journal entry to record the employees' share of the payroll?

• A) Net pay
• B) Gross pay
• C) Garnishment
• D) 401(k) contributions

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Definitions:

Annuity

An economic scheme that delivers fixed periodic earnings to recipients, usually serving as financial support for those retired.

Payments

Transactions where a good or service is exchanged for monetary compensation.

Present Value

The current value of a future sum of money or stream of cash flows, discounted at a specific interest rate.

Future Cash Flows

The anticipated receivable or payable cash amounts of a company, used for investment analysis and financial planning.