Question

Assume that the City of Juneau maintains its books and records to facilitate the preparation of its fund financial statements. The City pays its employees bi-weekly on Friday. The fiscal year ended on Wednesday, June 30. Employees had been paid on Friday, June 25. The employees paid from the General Fund had earned $90,000 on Monday, Tuesday, and Wednesday (June 28, 29, and 30). What entry, if any, should be made in the City’s General Fund?

Answer 1

Answer:

Explanation:

The journal entry is shown below:

Wages and Salaries Expenses A/c Dr                             $90,000

  To Wages and Salaries payable                  $90,000

(Being salary are paid to the employees)

In the given question, cash transaction is not involved so we credited to the wages and salaries payable and since salary is paid so it is an expense that's why we debited it.