McHale Enterprises Has the Following Incomplete General Journal Entry for the Most

question 23

Multiple Choice

McHale Enterprises has the following incomplete General Journal entry for the most recent pay date: What is the amount of the 401(k) contributions for the pay date?
$$\begin{array} { | l | l | l | r | r | r | } \hline \text { Oct } & 27 & \text { Wages and salaries expense } & 522 & \$ 298,384.00 & \\\hline & & \text { Federal withholding tax payable } & 220 & & \$ 50725.28 \\\hline & & \text { 5ocial Security tax payable } & 221 & & 17,980.56 \\\hline & & \text { Medicare tax payable } & 222 & & 4,205.13 \\\hline & & 401 ( k ) \text { contributions payable } & 223 & & ? ? ? \\\hline & & \text { Health Insurance payable } & 224 & & 8375.00 \\\hline & & \text { Savings bonds payable } & 227 & & 1,850.00 \\\hline & & \text { Wages and salaries payable } & 226 & & 202,671.98 \\\hline&&&&\\\hline \text { Oct } & 27 & \text { Wages and salaries payable } & 226 & 202,671.98 & \\\hline & & \text { Cash } & 101 & & 202,671.98 \\\hline\end{array}$$

• A) $2,253.00
• B) $15,298.22
• C) $12,576.05
• D) $9,215.38

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Definitions:

Zero Economic Profit

A situation where a firm's total revenues are exactly equal to its total costs, including opportunity costs, typically occurring in perfect competition in the long run.

Marginal Firm

A business that operates at the minimum level of profitability where any decrease in market prices would cause it to exit the market.

Accounting Profits

Accounting profits represent the financial gains of a business as calculated by revenue minus explicit costs, according to standard accounting practices.

Profit-Maximizing

A method or strategy that firms use to achieve the highest possible profit from their operations.