Accounting Adjusting entries

jlford19 · #1 Feb 18, 2007, 08:02 PM

Hasterson has a five-day work week and pays salaries of $70,000 each friday
1 Make the adjusting entry required on July 31, assuming that August 1 falls on a wensday.
2 Make the entry to pay the salaries on August 3.

Thanks!!!

CaptainForest · Feb 18, 2007, 08:37 PM

What do YOU think the answer is?

jlford19 · Feb 19, 2007, 04:43 AM

July 30- wages Payable CR 70,000

August 3- Salaries Expense - DR 70,000

CaptainForest · Feb 19, 2007, 06:27 PM

Every transaction must have a debit and a credit and they must equal each other.

For question 1….

2 of the 5 days salary are owed.

Therefore, 70,000 / 5 x 2 = $28,000

Dr. Salaries Expense 28,000
Cr. Salaries Payable 28,000

To pay the salaries on Aug 3…
Dr. Salaries Expense 42,000 (70,000-28,000)
Dr. Salaries Payable 28,000
Cr. Cash 70,000



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