Question
Zar company paid employee wages on and through friday,january,26 and the next playroll will be paid in february. Emploees work 5
days a week(from monday till friday) and the company pays 900$ a day in wages.what will be the adjusting entry to accrue waves expense of the remaining unpaid days at the end of january?
Solutions
Answer1
Answer:
Debit to Salaries Expense $2,700; Credit to Salaries Payable $2,700
Explanation:
In accounting, we have to recognize all expenses even though we haven’t paid it yet. This is one of those instances.
The employees have worked for 3 days at the end of January but will not receive their payment on that day. That equates to $2,700 of salaries accrued at the end of January.
Accrued Expenses are recorded as payables, in this problem it’s “Salaries Payable”.
So to complete the adjusting journal entry:
(Debit) Salaries Expense $2,700
(Credit) Salaries Payable $2,700
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