Question

Sherriane Baby Products’ salaries expense was $16.6 million.

Required:
What is the amount of cash Sherriane paid to employees during the reporting period if its salaries payable increased by $4.9 million? Prepare a summary entry that represents the net effect of salaries expense incurred and paid during the reporting period.

What is the amount of cash Sherriane paid to employees during the reporting period if its salaries payable increased by $4.9 million? (Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

Cash

million

Prepare a summary entry that represents the net effect of salaries expense incurred and paid during the reporting period. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Prepare the summary entry for salaries during the reporting period.

Answer 1

Salary Expense as reported by Sherriane Baby Products=16.6 Million
Cash paid to employees=	Salary Expense	16.6
	Less: Payable at the end of reporting period
	Add: Payable in the beginning of reporting period
Difference of closing balance of salary payable at the end of reporting period and in the beginning of reporting period=$4.9 million
Therefore cash paid to employees=	Salary Expense	16.6	million
	Less: Increase in closing balance of salary payable at the end of reporting period	4.9	million
	Cash paid to employees=	11.7	million
Entry for recording salary
Salary Expenses	Dr	16.6
Cash	Cr	11.7
Salary Payable	Cr	4.9