Question

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

Answer 1

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