Question

Adjusting Entries for Accrued Salaries

Garcia Realty Co. pays weekly salaries of $26,500 on Friday for a five-day workweek ending ending on that day.

a. Journalize the necessary adjusting entry at the end of the accounting period assuming that the period ends on Monday.

b. Journalize the necessary adjusting entry at the end of the accounting period assuming that the period ends on Thursday.

Answer 1

1.

Salaries A/c                 $5,300

To O/s Salaries a/c                   $5,300

Being 1 day salary accrued

( $ 26,500 *1 day)/ 5 day= $ 5,300.

B

Salaries A/c                 $21,200

To O/s Salaries a/c                   $21,200

Being 4 day salary accrued

( $ 26,500 *4 day)/ 5 day= $ 21,200.