Question

A company pays each of its two office employees each Friday at the rate of $210 per day for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is: Multiple Choice Debit Salaries Expense $1,260 and credit Salaries Payable $1,260. Debit Salaries Payable $840 and credit Salaries Expense $840. Debit Unpaid Salaries $1,260 and credit Salaries Payable $1,260. Debit Salaries Expense $840 and credit Salaries Payable $840.

Answer 1

Answer:

Correct answer is:

Debit Salaries Expense $840

Credit Salaries Payable $840

Explanation:

2 employees each paid at $ 210 per day so daily salary expense is $210*2 = $420.

The accounting period ends on Tuesday and both employees work for Monday and Tuesday so the 2 days salaries expense is $420*2= $840.

As the salaries are paid on every Friday so there is a liability on a company for the 2 days salary payable to be recorded on accounting period close date i.e Tuesday.

Answer 2

Answer:

Debit Salaries Expense $840

Credit Salaries Payable $840

Explanation:

The are two office employees so 2*210=$420

To record the month-end salaries of 2 employees which is due but not paid = 420*2 = $840