Question

Oakdale Manufacturing pays weekly salaries of $105,000 on Friday for a five-day week ending on that day. journalize the necessary adjusting entry at the end of the accounting period, assuming that the period ends a) on Monday, b) on Wednesday.

Answer 1

Transaction	General Journal	Debit	Credit
Adjusting entry assuming that period ends on Monday
(a)	Salaries expense	$ 21,000.00
	Salaries payable		$ 21,000.00
	(salaries payable for 1 day)
Adjusting entry assuming that period ends on Wednesday
(b)	Salaries expense	$ 63,000.00
	Salaries payable		$ 63,000.00
	(salaries payable for 3 days)

When period ends on Monday then 1 days salary is accrued (105000/5 x 1)

And when period ends on Wednesday then 3 days salary will be accrued (105000/5 x 3)