According to a summary of the payroll of Scotland Company, total salaries were $500,000. Assume that social security taxes are payable at a 6% rate and Medicare taxes are payable at a 1.5% rate with no maximum earnings. 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:

Question

Haylie Cisneros

Business

5 December, 20:10

According to a summary of the payroll of Scotland Company, total salaries were $500,000. Assume that social security taxes are payable at a 6% rate and Medicare taxes are payable at a 1.5% rate with no maximum earnings. 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:

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Abraham Mills · Answer 1

The journal entry to record accrued salaries would include a credit to salaries payable of $364500.

Explanation:

Salaries payable = 500000 - (500000*6%) - (500000*1.5%) - 98000

= $364500

Therefore, The journal entry to record accrued salaries would include a credit to salaries payable of $364500.