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The accountant of a business needs to prepare the relevant journal entries to determine items...

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Accounting

The accountant of a business needs to prepare the relevant journal entries to determine items related to salaries, deductions and contributions. For the end of the period, salaries due to employees are $20,000. Total employee contributions to employee pensions are $3,500. Employee income tax payable is $5,400. CPP payable is $1,100. EI payable is $300. What is included in the journal entry to record the pay period? Select one:

a. Credit Salaries Payable $20,000

b. Credit EI payable $3,500

c. Credit Employee Pensions Receivable $3,500

d. Debit Salaries Expense $20,000

On February 1, 2023, a company acquired a note payable for $60,000 by signing a five-year, 10% note payable, repayable in installments of $12,000 per year plus interest on the outstanding balance. Payments are due on January 31 of each year. What is the journal entry made on January 31, 2024 to record the first payment?

Select one:

a. Debit Notes Payable $12,000; debit Interest Expense $6,000; credit Cash $18,000

b. Debit Notes Payable $6,000; debit Interest Expense $12,000; credit Cash $18,000

c. Debit Interest Expense $6,000; credit Cash $6,000

d. Debit Interest Expense $12,000; credit Cash $12,000

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