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:

Goods And Services

The outputs offered by businesses and individuals which can be tangible products or intangible activities performed for others.

Within The Organization

Refers to actions, processes, or dynamics that occur inside a company, institution, or group.

Procurement Organization

An entity responsible for acquiring goods and services needed by a company or institution to function effectively.

Purchasing

The process of acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process.