Question

Oakmont Company closes its accounts on December 31 each year. The company works a five-day work week and pays its employees every two weeks. On December 31, Oakmont accrued $4,700 of salaries payable. On January 9 of the following year, the company paid salaries of $15,000 cash to employees. Prepare entries using the financial statement effects template to ( ) accrue th

Answer 1

Answer:

A. Dr Salaries Expense$4,700

Cr Salaries Payable$4,700

B. Dr Retained Earnings$250,000

Cr Salaries Expense$250,000

Explanation:

Preparation of Journal Entries

Preparation of Journal entry for the Accrue salaries payable on December 31:

Based on the information given we were told that he accrued the amount of $4,700 of salaries payable which means that the Journal entry will be recorded as:

Dec.31

Dr Salaries Expense$4,700

Cr Salaries Payable$4,700

(To record accrued salaries=

b. Journal entry to Close the Salaries Expense account on December 31

Based on the information given we were told that the account has a year end balance of the amount of $250,000 after adjustments has been made which means that the Journal entry will be recorded as:

Dec.31

Dr Retained Earnings$250,000

Cr Salaries Expense$250,000

(To close the Salaries Expense account)