5. If MAB Inc.'s gross salaries are $12,000, and it withholds $1,800 for income taxes and $800 for Employment Insurance and other deductions, the journal entry to record the employees' pay should include: a. debit to Salary Expense for $9,400. b. debit to Salary Payable for $9,400. c. credit to Salary Payable for $12,000. d. credit to Cash for $9,400. 6. On the dividend declaration date, a company needs to do the following: a. debit Dividends Declared and credit Dividends Payable for the amount of the dividend. b. debit Dividend Expense and credit Cash for the dividend amount. c. debit Dividends Payable and credit Cash for the dividend amount. d. establish who will receive the dividend payment. 7. Which of the following transaction is most likely to improve a company's solvency? a. Issuing common stock. b. Tightening credit terms. c. Paying previously declared dividends. d. None of the above