Question

Prior to adjustment at August 31, Salary Expense has a debit balance of $322,200. Salaries owed but not paid as of the same date total $2,550. Prepare the entries to record the following:

Answer 1

Explanation:

The Journal entry is shown below:-

a. Salary Expense Dr,             $2,550

          To salaries payable                $2,550

(Being accrual of salary is recorded)

b. Income summary Dr,           $324,750

        To Salary expense                    $324,750

($322,200 + $2,550)

(Being closing of salary expense is recorded)