Merton Companys payroll for the week of July 17 consisted of federal income taxes payable of $11,400, FICA taxes payable of $6,200, state income taxes payable of $2,320; this was on gross pay (salaries and wages expense) of $27,700. What is the amount of net pay (salaries and wages payable)?

A. $27,700. B. $8,680. C. $10,100. D. $7,780.

AND

On January 1, 2020, Compost Inc., issued $1,000,000, 6 percent bonds, at 97 percent of face value. The entry to record the bond issuance would include a:

A. Debit to Cash $970,000. B. Credit to Discount on Bonds Payable, $30,000. C. Debit to Cash, $1,000,000. D. Credit to Bonds Payable, $970,000.