Answers:
a. Salaries Expense10,350
Salaries Payable10,350
Accrued salaries [($17,250 ÷ 5 days) × 3 days].
b. Salaries Expense13,800
Salaries Payable13,800
Accrued salaries [($17,250 ÷ 5 days) × 4 days].
EX 3-5 Adjusting entries for accrued salaries
Garcia Realty Co. pays weekly salaries of $17,250 on Friday for a five-day workweek ending on that day. Journalize the necessary adjusting entry at the end of the accounting period, assuming that the period ends (a) on Wednesday and (b) on Thursday.
Answers:
a. Salaries Expense10,350
Salaries Payable10,350
Accrued salaries [($17,250 ÷ 5 days) × 3 days].
b. Salaries Expense13,800
Salaries Payable13,800
Accrued salaries [($17,250 ÷ 5 days) × 4 days].
Answers:
a. Salaries Expense10,350
Salaries Payable10,350
Accrued salaries [($17,250 ÷ 5 days) × 3 days].
b. Salaries Expense13,800
Salaries Payable13,800
Accrued salaries [($17,250 ÷ 5 days) × 4 days].