Question

Adjusting Entries for Accrued SalariesGarcia Realty Co. pays weekly salaries of $26,500 on Friday for a five-day workweek ending ending on that day.a. Journalize the necessary adjusting entry at the end of the accounting period assuming that the period ends on Monday.b. Journalize the necessary adjusting entry at the end of the accounting period assuming that the period ends on Thursday.

Answer 1

Answer:

a.

                                                     Debit                    Credit

Salary expense                            $5,300                

($26,500/5)

Salary payable                                                        $5,300

b.                                                       Debit                    Credit

Salary expense                            $21,200                

($26,500/5*4)

Salary payable                                                        $21,200

Explanation:

a. The journal entry that should be made in the books of the Garcia Realty Co. if the accounting period ends on the monday is given below:

                                                     Debit                    Credit

Salary expense                            $5,300                

($26,500/5)

Salary payable                                                        $5,300

b. The journal entry that should be made in the books of the Garcia Realty Co. if the accounting period ends on the thursday is given below:

                                                     Debit                    Credit

Salary expense                            $21,200                

($26,500/5*4)

Salary payable                                                        $21,200