According to a Summary of the Payroll of Scotland Company

question 40

Multiple Choice

According to a summary of the payroll of Scotland Company, $450,000 was subject to the 7.0% social security tax and $500,000 was subject to the 1.5% Medicare tax. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (4.2%) and federal (0.8%) unemployment taxes. The journal entry to record accrued salaries would include:

• A) a debit to Salary Payable of $313,000
• B) a credit to Salary Payable of $363,000
• C) a debit to Salary Expense of $363,000
• D) a credit to Salary Expense of $313,000

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Definitions:

Financial Position

The snapshot of a company's assets, liabilities, and equity at a specific point in time, providing insight into its economic resources and obligations.

Operating Condition

The current state and functioning status of a company's operational processes and resources.

Insurance

A contractual arrangement where an insurer agrees to compensate the insured for specified loss, damage, illness, or death in return for payment of a premium.

Freight Charges

Costs associated with transporting goods from one place to another.