Question

During the year, Cheng Company paid salaries of $23,500. In addition, $9,500 in salaries has accrued by the end of the year but has not been paid. The year-end adjusting entry would include which one of the following?

Answer 1

Answer:

salary accrued and not paid for $9,500.

Explanation:

Accrued salaries usually implies to the amount of liability left over at the end of the year or usually a reporting period for salaries that have been earned by employees but have not been paid.  This data information can be used to forecast the residual compensation  liability of a business at a particular  period.

Year end adjusting entry for Cheng Company will include salary accrued and not paid for$9,500.

Adjusting Journal entry will be ;

Salaries expense $9,500.

Salaries expense payable $9,500.