Question

On October 15, Eco Brewers had a balance of $4, 390 in its Social Security tax payable account. It posted an additional $4, 390 on its October 31 pay date. Since Eco Brewers is a monthly schedule depositor, what entry should appear on November 15 for the remittance of the month's Social Security taxes?

a. Credit $8, 780
b. Debit $8, 780
c. Credit $4, 390
d. Debit $4, 390

Answer 1

Answer: The correct answer is "b. Debit $8, 780".

Explanation: The entry that should appear on november 15 for the remittance of the month's social security taxes is "Debit $8, 780"

Because the balance of $ 4390 in its Social Security tax payable account + the additional $ 4390 on its October 31 pay date = $ 8780.