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 Wednesday.
2 Make the entry to pay the salaries on August 3.

Thanks!!

What do YOU think the answer is?

July 30- wages Payable CR 70,000

August 3- Salaries Expense - DR 70,000

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