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castortr0y [4]
3 years ago
13

For each of the following, journalize the necessary adjusting entry. (a) A business pays weekly salaries of $15,000 on Friday fo

r a five-day week ending on that day. Journalize the necessary adjusting entry at the end of the fiscal period, assuming that the fiscal period ends (1) on Wednesday, (2) on Thursday.
Business
1 answer:
Helen [10]3 years ago
5 0

Answer:

Part 1:

Account                                    Debit                                Credit

Salary Expense                     $9,000

 Salary Payable                                                                $9,000

Part 2:

Account                                    Debit                                Credit

Salary Expense                     $12,000

 Salary Payable                                                                $12,000

Explanation:

Part 1:

Wednesday (3rd day of the week)

Salary of week =$15,000

Salary of each day=$15,000/5

Salary of each day=$3,000

Salary on Wednesday=$3,000*3

Salary on Wednesday=$9,000

Journal Entry:

Account                                    Debit                                Credit

Salary Expense                     $9,000

 Salary Payable                                                                $9,000

Part 2:

Salary of week =$15,000

Salary of each day=$15,000/5

Salary of each day=$3,000

Salary on Wednesday=$3,000*4

Salary on Wednesday=$12,000

Journal Entry:

Account                                    Debit                                Credit

Salary Expense                     $12,000

 Salary Payable                                                                $12,000

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                                  Allied Merchandisers

                                        Journal Entries

Date           General Journal                         Debit        Credit

03-May   Merchandise Inventory               $20,000

                     To Cash                                                     $20,000

05-May    Accounts Receivable                 $21,000

                      To Sales                                                    $21,000

05-May     Cost of goods sold                     $15,000

                     To Merchandise Inventory                        $15,000

07-May      Sales Returns and allowances   $1,750  

                      To Accounts Receivable                           $1,750

07-May      Merchandise Inventory               $1,250

                      To Cost of goods sold                                $1,250

08-May      Sales Returns and allowances    $300

                       To Accounts Receivable                            $300

15-May        Cash                                             $18,571

                   Sales Discounts                           $379

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                         To Accounts receivable                           $18,950

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