Question

Assume that the weekly payroll of in the woods is . December​ 31, end of the​ year, falls on​ Tuesday, and will pay its employee on Friday for the full week. What adjusting entry will make on​ Tuesday, December​ 31?​ (Use five days as a full​ workweek.)

Answer 1

Answer and Explanation:

The adjusting entry made on Tuesday is as follows

Salaries expense Dr $120 ($300 × 2 days ÷ 5 days)

To Salaries payable $120

(Being the salaries expense is recorded)

here the salaries expense is debited as it increased the expenses and salaries payable is credited as it also increased the liabilities.