Question

Zar company paid employee wages on and through friday,january,26 and the next playroll will be paid in february. Emploees work 5 days a week(from monday till friday) and the company pays 900$ a day in wages.what will be the adjusting entry to accrue waves expense of the remaining unpaid days at the end of january?

Answer 1

Answer:

Debit to Salaries Expense $2,700; Credit to Salaries Payable $2,700

Explanation:

In accounting, we have to recognize all expenses even though we haven't paid it yet. This is one of those instances.

The employees have worked for 3 days at the end of January but will not receive their payment on that day. That equates to $2,700 of salaries accrued at the end of January.

Accrued Expenses are recorded as payables, in this problem it's "Salaries Payable".

So to complete the adjusting journal entry:

(Debit)        Salaries Expense        $2,700

(Credit)                Salaries Payable              $2,700