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Calcuating Net Pay After Various Deductions

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

Solution Preview

The net pay is after all the deduction.
The net pay is 13,000-975-2,600-500 = 8,925. ...

Solution Summary

The solution explains the journal entry to be made for recording the net pay.