Use This Information to Answer the Following Question The Entry on January 20 Would Be a Debit to Has

question 30

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 on January 20 would be a debit to

• A) Salaries Payable and a credit to Cash.
• B) Salaries Payable and a credit to Salaries Expense.
• C) Salaries Expense and a credit to Cash.
• D) Salaries Expense and a credit to Salaries Payable.

---

Definitions:

Total Profit

The overall financial gain calculated by subtracting total costs from total revenue.

Collude

To come together in secret agreement, especially for a deceitful or illegal purpose.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a product or service.

Annual Fixed Cost

Regular, unchanging expenses incurred by a business, regardless of its level of production or sales volume within a year.