COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Employee Income Tax payable, Social Security Tax Payable, and Medicare Tax Payable
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Debit Factory Overhead for $2, 100, Credit Materials for $2, 100
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Debit Work in Process for $2, 100, Credit Materials for $2, 100
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Debit Materials for $2, 100; Credit Work in Process for $2, 100
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Debit Materials for $2, 100; Credit Cost of Goods Sold for $2, 100
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Explanation:
Detailed explanation-1: -Companies record income tax expense as a debit and income tax payable as a credit in journal entries. If companies use the same cash method of accounting for both financial and tax reporting, the completed journal entries include an equal debit and credit to income tax expense and income tax payable, respectively.
Detailed explanation-2: -Taxes payable refers to one or more liability accounts that contain the current balance of taxes owed to government entities. Once these taxes are paid, they are removed from the taxes payable account with a debit.
There is 1 question to complete.