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    yst424's Avatar
    yst424 Posts: 1, Reputation: 1
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    #1

    Aug 6, 2010, 10:16 AM
    Need information on adjustment for accrued salaries
    Canyon co pays weekly salaries of 12,000 on Friday for a five day week ending on that day. What is the adjustment at the end of the accounting period?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Aug 6, 2010, 02:40 PM

    First you need to calculate the salaries for a daily basis then take this amount times the number of days to get the adjustment amount.

    For example the end of an accounting period is on a Wednesday you would take $12,000/5 = $2,400 * 3 days = $7,200
    Your journal entry will be: Debit Salaries Expense 7,200 and Credit Salaries Payable 7,200

    When you pay the pay the salaries on Friday your journal entry will be:
    Debit Salaries Expense 4,800 (for Thursday & Friday)
    Debit Salaries Payable 7,200 and Credit Cash for 12,000
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