A company has gross payroll of $30,000; federal income tax withheld of $6,000; FICA (social security) taxes

Question:

A company has gross payroll of $30,000; federal income tax withheld of $6,000; FICA (social security) taxes withheld of $1,860; and Medicare taxes withheld of $435.

1. How much will the balance sheet show for salaries payable (to employees)?

2. How much will the income statement show for salary expense?

3. What type of liability is salaries payable?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...