Use This Information to Answer the Following Question The Entry to Record the Payroll Would Include a
A)

question 40

Multiple Choice

Use this information to answer the following question. Baker Company has the following information for the pay period of January 1-15,2010.Payment occurs on January 20.
$\begin{array}{lrlr}\text { Gross payroll } & \$ 16,000 & \text { Federal income taxes withheld } & \$ 1,800 \\\text { Social security and Medicare rate } & 7.65 \% & \text { Federal unemployment tax rate } & .8 \%\\\text { State unemployment tax rate}&5.4\%\end{array}$
The entry to record the payroll would include a

• A) debit to Salaries Payable for the net amount.
• B) credit to State Unemployment Tax Payable.
• C) debit to Salaries Expense for the amount paid to the employees.
• D) debit to Salaries Expense for the gross payroll.

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Definitions:

Real Variables

Variables measured in physical units.

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate measure of economic performance over time.

Economic Activity

The actions that involve the production, distribution, and consumption of goods and services within an economy.

Aggregate Demand

The comprehensive economic demand for all goods and services, marked at a particular price level over a certain period.