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    jlford19's Avatar
    jlford19 Posts: 6, Reputation: 1
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    #1

    Feb 18, 2007, 10:02 PM
    Accounting Adjusting entries
    Hasterson has a five-day work week and pays salaries of $70,000 each Friday
    1 Make the adjusting entry required on July 31, assuming that August 1 falls on a Wednesday.
    2 Make the entry to pay the salaries on August 3.

    Thanks!!
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Feb 18, 2007, 10:37 PM
    What do YOU think the answer is?
    jlford19's Avatar
    jlford19 Posts: 6, Reputation: 1
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    #3

    Feb 19, 2007, 06:43 AM
    July 30- wages Payable CR 70,000

    August 3- Salaries Expense - DR 70,000
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #4

    Feb 19, 2007, 08:27 PM
    Every transaction must have a debit and a credit and they must equal each other.

    For question 1….

    2 of the 5 days salary are owed.

    Therefore, 70,000 / 5 x 2 = $28,000

    Dr. Salaries Expense 28,000
    Cr. Salaries Payable 28,000


    To pay the salaries on Aug 3…
    Dr. Salaries Expense 42,000 (70,000-28,000)
    Dr. Salaries Payable 28,000
    Cr. Cash 70,000
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