Answered step by step
Verified Expert Solution
Question
1 Approved Answer
For the month of December, Payless, Inc.'s gross payroll was $100,000. Income taxes withheld totals $20,000. The FICA (Social Security and Medicare) rate is 7.65%.
For the month of December, Payless, Inc.'s gross payroll was $100,000. Income taxes withheld totals $20,000. The FICA (Social Security and Medicare) rate is 7.65%. Ignoring the employer's portion of FICA and Medicare, show the effect on the accounting equation of paying its employees on December 31: Assets Liabilities Shareholders' Equity $ DO NOT INCLUDES IN YOUR ANSWER. A. (100,000) Salary Payable B.(20,000) Income Taxes Payable C. 20,000 Income Taxen Payable; 7,650 FICA Payable D. (100,000) Salary Expense E. (46,175) Salary Expense F. (20,000) Salary Payable Liabilities G.(94,350) Cash Shareholders' Equity H. (72,350) Cash 1. 20,000 Income Taxes Expense J. (100,000) Cash K. (20,000) Income Taxes Payable: (7,650) FICA Payable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started