Question

Sales of services, $100,000, of which $30,000 was on credit.collected on accounts receivable, $27,300.issued shares of common stock in exchange for $10,000 in cash.paid salaries, $50,000 (of which $9,000 was for salaries payable).paid miscellaneous expenses, $24,000.purchased equipment for $15,000 in cash.paid $2,500 in cash dividends to shareholders.record the adjusting journal entry for accrued salaries at year-end that amounted to $1,000.

Answer 1

The adjusting journal entry for accrued salaries at year-end:

To record the accrued salaries at year-end, Salaries Expense account is debited and Salaries Payable account is credited with the amount of accrued salaries. The adjusting journal entry for accrued salaries at year-end that amounted to $1,000 shall be as follows:

Salaries Expense Debit   $1,000

Salaries Payable Credit                  $1,000