Question

Blankenship Company pays its employees every Friday for work rendered that week. The payroll is typically $10,000 per week. What journal entry would be recorded (on Wednesday) if the end of the accounting period occurred on a Wednesday

Answer 1

Dr salaries expense $6,000

Cr salaries payable $6,0000

Step-by-step explanation:

Since the $10,000 payroll charge on Friday is for the whole week, an appropriate adjustment for month close on a Wednesday would to recognize the amount payable to employees for that week from Monday till Wednesday as follows:

Amount of salaries owed on Wednesday=$10,000*3/5=$6,000

The appropriate entries for the above would a debit to salaries expense for $6,000 while a credit goes to salaries payable