Question

For the month of September, Seawide Sales, Inc. recorded gross pay of $74,250. The net pay for the month amounted to $59,750. The salaries are paid on October 5. Which of the following is the journal entry for the payment of salaries?
A. Salaries and Wages Expense 59750
Cash 59750
B. Salaries and Wages Payable 74250
Cash 74250
C. Salaries and Wages Payable 59750
Cash 59750
D. Salaries and Wages Expense 74250
Cash 74250

Answer 1

Answer: Salaries and Wages Payable 59750

Cash 59750

Explanation:

A journal is an accounting book where the transactions of a business are recorded.

From the question, we are given the information that for the month of September, Seawide Sales, Inc. recorded gross pay of $74,250 and that the net pay for the month amounted to $59,750 and that salaries are paid on October 5.

The information implies that cash will be paid as a credit entry and also that the salaries and payables will be created for $59,750 as a debit entry.