Problem 1: 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
Problem 2: 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?
- $29,500
- $35,500
- $23,500
- $20,500