Question

A business pays weekly salaries of $30,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on a Thursday is
A business pays weekly salaries of $30,000 on Frid


debit Salaries and Wages Expense, $24,000; credit Salaries and Wages Payable, $24,000.


debit Salaries and Wages Expense, $6,000; credit Salaries and Wages Payable, $6,000.


debit Salaries and Wages Payable, $24,000; credit Cash, $24,000.


debit Salaries and Wages Expense, $24,000; credit Cash, $24,000

Answer 1

Answer:

debit Salaries and Wages Expense, $24,000; credit Salaries and Wages Payable, $24,000.

Explanation:

The journal entry is shown below:

Salaries and Wages Expense A/c Dr $24,000

   To Salaries and Wages Payable $24,000

(Being salary and wages is adjusted)

The computation is shown below:

Five day salary = $30,000

Per day salary = $30,000 ÷ 5 days = $6,000

Now Monday to Thursday salary i.e 4 days salary = $6,000 × 4 days = $24,000