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Paradise Realty Co. pays weekly salaries of $25,500 on Friday for a five-day workweek ending on that day.a. Journalize the necessary adjusting entry at the end of the accounting period, assuming that the period ends on Monday. If an amount box does not require an entry, leave it blank.Salaries Expence
Salraies Payableb. Journalize the necessary adjusting entry at the end of the accounting period, assuming that the period ends on Thursday. If an amount box does not require an entry, leave it blank.Salaries expenseSalaries Payable

Sagot :

Answer and Explanation:

The adjusting entry is shown below:

a.

Salaries expense ($25,500 ÷ 5 days) $5,100

     To salaries payable $5,100

(being the salary expense is recorded)

Here the salaries expense is debited as it increased the expense and credited the salary payable as it also increased the liabilities

b.

Salaries expense ($25,500 ÷ 5 days × 4 days ) $20,400

     To salaries payable $20,400

(being the salary expense is recorded)

Here the salaries expense is debited as it increased the expense and credited the salary payable as it also increased the liabilities

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