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Question - Mango Co.'s employees earned $500 in wages for the month ended January 31. The company withholds its employees' income tax liability from their wages. The federal and state income tax is assumed to be 30%.
Record the journal entries related to Mango's wage expense. Select all that apply.
Mango Co.'s employees earned $500 in wages for the month ended January 31. The company withholds its employees' income tax liability from their wages. The federal and state income tax is assumed to be 30%.
Dr. Wage expense -- $350
Cr. Wages payable -- $350
Dr. Wage expense -- $500
Cr. Income tax withholding liability -- $150
Dr. Income tax withholding asset -- $150
Cr. Wages payable -- $500
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