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-   -   Journal entry (https://www.askmehelpdesk.com/showthread.php?t=317033)

  • Feb 13, 2009, 03:57 PM
    mjacobson86
    Journal entry
    I need help on the journal entry for this... would it be:
    dr. salaries expense 1600
    Cr. Cash 1600

    Or do I take into account that they were paid on the 20th?

    August 20: Paid $1,600 for employee salaries (assume no payroll taxes were incurred).
  • Feb 13, 2009, 05:39 PM
    pready

    If the question say they were acrued, this means that they were earned but not yet paid.

    The journal entry is:
    Debit Salaries Expense for the amount
    Credit Salaries Payable for the amount

    When the salaries are paid, then the journal entry is:
    Debit Salaries Payable for the amount in the account
    Deibt Salaries Expense for the difference
    Credit Cash for the amount paid.

    If your wages earned in the period are being paid in the period then the journal entry is:
    Debit Salaries Expense for the amount
    Credit Cash for the amount

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