Recording payroll involves two separate entries: one to record the payroll expense and another to pay the employees. The general journal entry to record the payroll expense is based on the payroll register. The gross pay is debited to Shipping Wages Expense for the shipping clerks and supervisor and to Office Salaries Expense for the office clerk. Each type of deduction is credited to a separate liability account (Social Security Tax Payable, Medicare Tax Payable, Employee Income Tax Payable, Health Insurance Premiums Payable). Net pay is credited to the liability account, Salaries and Wages Payable. 4 7. OBJECTIVE Journalize payroll transactions in the general journal. | Business Transaction | | The information in the payroll register (Figure 10.3) is used to record the payroll expense. |  <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073029920/0073029920_010_010.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a>]]>
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Southwest Airlines Co. recorded salaries, wages, and benefits of more than $3.10 billion for the year ended December 31, 2003. |
Exercise 10.6, 10.7 Problem 10.4A, 10.1B, 10.4B |
