Question

A business pays weekly salaries of $30100 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on a Thursday is

Answer 1

Answer and Explanation:

The adjusting entry would be

Salaries and Wages Expense $24,080 ($30,100 ÷ 5 days × 4 days)

To Salaries and Wages Payable $24,080

(being the salaries & wages expense is recorded)

Here we debited the salaries and wages expense as it increased the expenses and at the same time we credited the salaries and wages payable as it also increased the liabilities

The same is to be considered