Supermeg Dry Cleaners Had the Following Payroll Data for Its

question 17

Multiple Choice

Supermeg Dry Cleaners had the following payroll data for its May 14 pay date:
When the firm remits its health insurance premium for this pay date,what is the General Journal entry?

• A) Debit Cash $13,618.71;Credit Health Insurance Payable $13,618.71
• B) Debit Cash $27,237.42;Credit Health Insurance Payable $27,237.42
• C) Debit Health Insurance Payable $13,618.71;Credit Cash $13,618.71
• D) Debit Health Insurance Payable $27,237.42;Credit Cash $27,237.42

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Definitions:

Organization Expense

These are initial costs incurred in the process of starting a business, such as legal fees, state fees, and promotional expenses, which may be expensed or capitalized over time.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership share in a corporation.

Common Stock Subscribed

Common stock subscribed refers to shares that investors have committed to purchase but have not yet been issued by the company.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer.