Question

Salaries expense has a debit balance of $800 in the Trial Balance column of the accounting worksheet. There is a $150 credit to Salaries payable in the Adjustment column. What amount would you expect to see in the Adjusted Trial Balance column for Salaries expense?

Answer 1

The Adjusted Trial Balance for Salaries Expense will be $650 after accounting for a $150 credit adjustment against the initial $800 debit balance.

Step-by-step explanation:

When considering the adjustment to the Salaries Expense account, the $800 initial debit balance in the Trial Balance column combined with a $150 credit in the Adjustment column for Salaries Payable results in an adjusted balance for Salaries Expense. Since Salaries Payable is a liability and increasing it would mean that some of the salaries expense has not yet been paid, we adjust the Salaries Expense with a credit to recognize the liability, which will decrease the Salaries Expense balance.

Therefore, the adjusted balance in the Adjusted Trial Balance column for Salaries Expense will be $650, calculated as $800 initial debit minus the $150 credit adjustment.