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The journal entry to record payroll transactions for the accounting period is to debit
Wages and Salaries Expense for the gross pay and credit the appropriate liability and
cash accounts.
A business that makes a product to sell is called a manufacturing business.
Under federal law, employers are required to withhold certain amounts from the total
earnings of each employee to be applied toward the payment of the employee's federal
income tax.
The Medicare tax rate is applied to all employee earnings; there is no maximum.
Rules developed to provide procedures and guidelines to be followed in the accounting
and reporting process are called ____________________.
It is not necessary to measure a business transaction in dollars.
Gross pay less mandatory and voluntary deductions is called ____________________.
The combination journal for Dr. Sandra Akins' medical practice for the month of June is
as follows:
Required:
Each entry is posted individually from the Cash Credit column of the combination
journal to the proper general ledger account.
Obligations that need not be paid for a long time, usually more than one year, are
classified as current liabilities.
