Question

Multiple Choice Question 143 A company shows a balance in Salaries and Wages Payable of $37900 at the end of the month. The next payroll amounting to $47800 is to be paid in the following month. What will be the journal entry to record the payment of salaries?

Answer 1

Answer: The answer is: Debit Salary and wages expense $9,900, Debit Salaries and wages payable $37,900, Credit Cash $47,800

Explanation: Since the company has $37,900 sitting in salaries and wages payable account at the end of the month and the payroll revealed that actual amount to be paid is $47,800, this means the company has a shortfall of $9,900 from the salaries and wages payable account. Therefore, this amount that was not accrued for would impact salary and wages expense by $9,900.