1. According to a summary of the payroll of Scotland Company, $450,000 was subject to the 7.0% social security tax and $500,000 was subject to the 1.5% Medicare tax. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (4.2%) and federal (0.8%) unemployment taxes. The journal entry to record accrued salaries would include:

   1. a debit to Salary Expense of $363,000

   2. a credit to Salary Expense of $313,000

   3. a debit to Salary Payable of $313,000

   4. a credit to Salary Payable of $363,000