Junkman Autos uses a separate checking account to pay their employees. The gross pay for the period was $1,000. However, after deductions were taken out, the net pay for the period was $820. The journal entry to record the issuance of payroll checks to their employees is:

journal entry are given below

Explanation:

given data

gross pay for the period = $1,000

net pay for the period = $820

to find out

journal entry to record the issuance of payroll checks

solution

journal entry are as

Account Name Debit Credit

Labor Expenses $1000

payroll taxes Payable $820

Net Payroll Payable $180

($1000 - $820)