Supermeg Dry Cleaners Had the Following Payroll Data for Its

question 58

Multiple Choice

Supermeg Dry Cleaners had the following payroll data for its May 14 pay date: $$\begin{array} { | l | r | l | r | r | r | } \hline \text { May } & 14 & \text { Wages and salaries expense } & 522 & \$ 187,327.54 & \\\hline & & \text { Federal withholding tax payable } & 220 & & \$ 31,845.68 \\\hline & & \text { Social Security tax payable } & 221 & & 10,769.95 \\\hline & & \text { Medicare tax payable } & 222 & & 2,518.78 \\\hline & & 401 ( \text { k) contributions payable } & 223 & & 6,556.46 \\\hline & & \text { Health Insurance payable } & 224 & & 13,618.71 \\\hline & & \text { Union Dues payable } & 227 & & 4,683.19 \\\hline & & \text { Wages and salaries payable } & 226 & & 117,334.77 \\\hline &&&&\\\hline \text { May } & 14 & \text { Wages and salaries payable } & 226 & 116,292.94 & \\\hline & & \text { Cash } & 101 & & 116,292.94 \\\hline\end{array}$$ When the firm remits the union dues for this pay period,what is the correct General Journal entry?

• A) Debit Cash $6,556.46; Credit Union Dues Payable $4,683.19
• B) Debit Union Dues Payable $4,683.19; Credit Cash $4,683.19
• C) Debit Cash $4,683.19; Credit Union Dues Payable $4,683.19
• D) Debit Union Dues Payable $4,683.19; Credit Cash $6,556.46

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Definitions:

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Competitive Industry

An industry characterized by many firms producing similar goods or services, where no single firm has a dominant market share.

Market Price

The existing rate at which an asset or service is available for buying or selling in the market.

Demand Curve

A visual diagram showing the correlation between an item's price and the amount of it that consumers want to buy.