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    Net pay/ vacation pay

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    27. The following totals for the month of June were taken from the payroll register of ABC Company:
    Salaries expense $13,000
    Social security and Medicare Taxes withheld 975
    Income Taxes withheld 2,600
    Retirement Savings 500

    The entry to record the payment of net pay would include a ________.
    debit to Salaries Payable for $13,000
    Debit to Salaries Payable for $8,925
    Credit to Salaries Expense for $8,925
    Credit to Salaries Payable for $8,925

    28. During its first year of operations, a company granted employees vacation privileges and pension rights estimated at a cost of $20,500 and $15,000. The vacations are expected to be taken in the next year and the pension rights are expected to be paid in the future 5-30 years. What is the total cost of vacation pay and pension rights to be recognized in the first year?

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    Solution Preview

    27. The amount of net pay is gross pay - deductions
    Net pay = 13,000-975-2,600-500 = 8,925
    This is the amount to pay and so is ...

    Solution Summary

    The solution has two questions - determining the net pay and vacation pay