Question

Flagg records adjusting entries at its December 31 year-end. At December 31, employees had earned $10,000 of unpaid and unrecorded salaries. The next payday is January 3, at which time $25,000 will be paid. Prepare the January 1 journal entry to reverse the effect of the December 31 salary expense accrual.

Answer 1

Answer and Explanation:

The journal entry that are required to reverse the impact is shown below:

Salaries payable $10,000

To Salaries expense $10,000

(Being the reversal of impact is recorded)

Here the salaries payable is debited as it decreased the liabilities and on the other hand the salaries expense is credited as it decreased the expenses

The same is to be considered