Question

A company pays each of its two office employees each Friday at the rate of $200 per day for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is:

Multiple Choice

• Debit Unpaid Salaries $1,200 and credit Salaries Payable $1,200.

• Debit Salaries Expense $800 and credit Salaries Payable $800.

• Debit Salaries Expense $1,200 and credit Salaries Payable $1,200.

• Debit Salaries Payable $800 and credit Salaries Expense $800.

• Debit Salaries Expense $800 and credit Cash $800.

Answer 1

Answer: Debit Salaries Expense $800 and Credit Salaries Payable $800

Explanation:

Salaries expense to be calculated for 2 days. [For Monday & Tuesday]

Salaries expense = 2 employees x 2 days x $200 per day = $800.

Adjusting Entry for Accrued salaries:

Date	Account title and Explanation	Debit	Credit
Dec 31	Salaries expense	$800
	Salaries payable		$800
	[To record accrued salaries expense]

Thus,

Option-2 Debit Salaries Expense $800 and Credit Salaries Payable $800 is correct.

answered by: anonymous