Totals for the month of March from payrol register of XYZ company
salaries expense $13,000
S.S and madicare texes withheld 975
Income taxes withheld 2,600
retirement savings 500
The entry to record the payment of net pay would include a
a) debit to salaries payable for 13,000
b) debit to salaries payable for $8,925
c) Credit to salaries expense for $8,925
d) credit to salaries payable for $8,925
The net pay is after all the deduction.
The net pay is 13,000-975-2,600-500 = 8,925. ...
The solution explains the journal entry to be made for recording the net pay.