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    jolene0879's Avatar
    jolene0879 Posts: 3, Reputation: 1
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    #1

    Jun 11, 2010, 06:27 PM
    Adjusting Entry for Accured Salaries
    Basil Company has a five-day workweek and pays salaries of $70,000 each Friday.

    1. Prepare the adjusting entry required om May 31, assuming that June 1 falls on a Wednesday.

    2. Prepare the entery to pay the salaries on June 3, including the amount of salaries payable from requirement 1.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Jun 12, 2010, 08:38 AM

    First you need to calculate the salary for 2 days (Monday and Tuesday). Take your total amount * 2/5 to get the adjusting entry amount. The adjusting entry is: Debit Salary Expense and Credit Salaries Payable for the amount

    The Jun 3 entry will be: Debit Salaries expense for 3 days (Wed, Thurs, and Friday), Debit Salaries Payable for the 2 days (Mon and Tue) and Credit cash for the total 5 days amount.
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