Question

Flagg records adjusting entries at its December 31 year end. At December 31, employees had earned $8,800 of unpaid and unrecorded salaries. The next payday is January 3, at which time $22,000 will be paid. Prepare the January 1 journal entry to reverse the effect of the December 31 salary expense accrual.

Answer 1

Answer:

Debt Salaries payable is $8800

Credit Salaries expense is $8800

Explanation:

given data

earn unpaid and unrecorded salaries = $8,800

paid = $22,000

to find out

journal entry to reverse the effect

solution

here journal entry to reverse the effect January 1 journal entry to reverse the effect of the December 31 salary expense accrual is as

particular                                  debt                               credit

Salaries payable                      $8800

Salaries expense                                                           $8800

as here unpaid salaries of December is paid in January