A company has 20 employees who each earn $500 per week for a 5-day week that begins on Monday. December 31 of 2007 is a Monday, and all 20 employees worked that day.
a) Prepare the required adjusting journal entry to record accrued salaries on December 31, 2007 .
b) Prepare the journal entry to record the payment of salaries on January 4, 2008.

I have attempted the following:-

a) Salaries Expense 2000
Salaries Payable 2000

b) Salaries Payable 10000
Cash 10000

Can you please advise?

Quote:

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Originally Posted by boothyuk123

a) Salaries Expense 2000
Salaries Payable 2000

b) Salaries Payable 10000
Cash 10000

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The salaries expense in part a is debit and payable is credit and in part (b) salaries payable is debit and cash is credit.

A. This is correct

B. You need to Debit Salaries Expense for 8,000
Debit Salaries Payable for 2,000
Credit Cash for 10,000

pready is correct