Zipperle Company Has the Following Payroll Information for the Pay

question 43

Multiple Choice

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

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

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Definitions:

Inferior Good

A type of product whose demand decreases when the income of consumers increases and vice versa.

Demand Coefficient

A measure that indicates the sensitivity or responsiveness of the quantity demanded of a good or service to changes in its price.

Normal Good

A good for which demand increases as the income of individuals or the economy grows, and decreases when income falls.

Income Responsiveness

The degree to which demand for a product or service changes in response to changes in consumer income.