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:

Export

Goods or services sold by a country to buyers in another country.

Import

The process of importing products or services from foreign countries for the purpose of selling them domestically.

Productivity

A measure of the efficiency of production, often quantified as the ratio of outputs to inputs in a given time period.

Production Possibilities

A graph or curve depicting the maximum output combinations of two goods that can be produced with available resources and technology.