Question

Brief Exercise 3-7 Sheridan Company’s weekly payroll, paid on Fridays, totals $6,600. Employees work a 5-day week. Prepare Sheridan’s adjusting entry on Wednesday, December 31, and the journal entry to record the $6,600 cash payment on Friday, January 2. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Answer 1

Answer:

Explanation:

The journal entry is shown below:

On December 31,2016

Salary Expense A/c Dr $3,960 ($1,320 × 3 days )

      To Salary Payable A/c     $3,960

(Being adjusted salary is recorded)

On January 2

Salary Expense A/c Dr  $2,640  ($1,320 × 2 days )

Salary Payable A/c       $3,960  ($1,320 × 3 days)

       To Cash A/c                          $6,600            

(Being cash is paid)