The following totals for the month of April were taken from the payroll records

Question

The following totals for the month of April were taken from the payroll records of Metz Company Salaries FICA taxes withheld Income taxes withheld Medical insurance deductions Federal unemploym ent taxes State unemployment taxes $90,000 6,885 19.800 3,600 720 4,500 Recording the payment of net payroll would include a(n) O decrease to Salaries and Wages Payable for $54,495 O decrease to Salaries and Wages Payable for $59,715. O decrease to Salaries and Wages Payable for $55,215. O decrease to Cash for $55,215

Explanation / Answer

Answer b. decrease to Salaries and Wages Payable for $59,715 Calculation of Net Payroll: Salaries        90,000.00 Less: Deductions FICA Taxes Withheld             6,885.00 Income Taxes Withheld          19,800.00 Medical Insurance Deduction             3,600.00        30,285.00 Net Payroll        59,715.00 Journal Entry to be passed: Particulars Dr. Amt. Cr. Amt. Salaries & Wages Payable          59,715.00    Cash        59,715.00

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