berthas bookstore has $1,000 in salaries - books, $2,000 in salaries - audio, $200 in social security…

berthas bookstore has $1,000 in salaries - books, $2,000 in salaries - audio, $200 in social security withholding, $80 in medicare, $300 in federal income tax withholding, $280 in state income tax withholding, and $150 in life insurance premiums. the correct entry for recording the company payroll is:\n\na. debit social security tax payable, $200, medicare tax payable, $80, federal income tax payable, $300, state income tax payable, $280, life insurance premiums payable, $150; credit salary expense - books, $1,000, salary expense - audio, $2,000, cash, $1,990.\n\nb. debit salary expense - books, $1,000, salary expense - audio, $2,000; credit social security tax payable, $200, medicare tax payable, $80, federal income tax payable, $300, state income tax payable, $280, life insurance premiums payable, $150, cash, $1,990.\n\nc. debit salary expense - books, $1,000, salary expense - audio, $2,000, cash, $1,990; credit social security tax payable, $200, medicare tax payable, $80, federal income tax payable, $300, state income tax payable, $280, life insurance premiums payable, $150.\n\nd. debit salary expense - books, $1,000, salary expense - audio, $2,000, social security tax payable, $200, medicare tax payable, $80, federal income tax payable, $300, state income tax payable, $280, life insurance premiums payable, $150; credit cash, $1,990.

berthas bookstore has $1,000 in salaries - books, $2,000 in salaries - audio, $200 in social security withholding, $80 in medicare, $300 in federal income tax withholding, $280 in state income tax withholding, and $150 in life insurance premiums. the correct entry for recording the company payroll is:\n\na. debit social security tax payable, $200, medicare tax payable, $80, federal income tax payable, $300, state income tax payable, $280, life insurance premiums payable, $150; credit salary expense - books, $1,000, salary expense - audio, $2,000, cash, $1,990.\n\nb. debit salary expense - books, $1,000, salary expense - audio, $2,000; credit social security tax payable, $200, medicare tax payable, $80, federal income tax payable, $300, state income tax payable, $280, life insurance premiums payable, $150, cash, $1,990.\n\nc. debit salary expense - books, $1,000, salary expense - audio, $2,000, cash, $1,990; credit social security tax payable, $200, medicare tax payable, $80, federal income tax payable, $300, state income tax payable, $280, life insurance premiums payable, $150.\n\nd. debit salary expense - books, $1,000, salary expense - audio, $2,000, social security tax payable, $200, medicare tax payable, $80, federal income tax payable, $300, state income tax payable, $280, life insurance premiums payable, $150; credit cash, $1,990.

Answer

Answer:

B. debit Salary Expense - Books, $1,000, Salary Expense - Audio, $2,000; credit Social Security Tax Payable, $200, Medicare Tax Payable, $80, Federal Income Tax Payable, $300, State Income Tax Payable, $280, Life Insurance Premiums Payable, $150, Cash, $1,990.

Explanation:

Step1: Identify salary expenses

Debit salary - related expenses: $1000 + $2000.

Step2: Identify payables and cash

Credit amounts withheld as payables ($200 + $80+ $300 + $280 + $150) and cash for net - pay. Net - pay = ($1000 + $2000)-( $200 + $80+ $300 + $280 + $150)=$1990.