Yams unlimited has total payroll of $60,000 for the month of September the income taxes to be withheld or $12,000 and FICA taxes are $4,590. What is the journal entry Yams should record for the payroll?

Dr Salaries expense 60,000

CrIncome tax payable 12,000

CrFICA tax payable 4,590

Cr Salaries payable 43,410

Explanation:

Preparation for the journal entry that Yams should record for the payroll

Dr Salaries expense 60,000

Cr Income tax payable 12,000

Cr FICA tax payable 4,590

Cr Salaries payable 43,410

[60,000-(12,000+4,590)]

(60,000-16,590)

=43,410

(Being to record the payroll amount)

38: The Substitution effect

39: First option

Explanation: