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    boothyuk123's Avatar
    boothyuk123 Posts: 2, Reputation: 1
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    #1

    Feb 4, 2009, 10:39 AM
    Salaries Payable at end of year and start of new year
    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?
    boothyuk123's Avatar
    boothyuk123 Posts: 2, Reputation: 1
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    #2

    Feb 4, 2009, 10:40 AM
    Quote Originally Posted by boothyuk123 View Post
    a) Salaries Expense 2000
    Salaries Payable 2000

    b) Salaries Payable 10000
    Cash 10000
    The salaries expense in part a is debit and payable is credit and in part (b) salaries payable is debit and cash is credit.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #3

    Feb 4, 2009, 11:32 AM

    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
    LILY2609's Avatar
    LILY2609 Posts: 11, Reputation: 1
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    #4

    Feb 4, 2009, 12:38 PM

    pready is correct
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