Question

g A company shows a balance in Salaries and Wages Payable of $50,000 at the end of the month. The next payroll amounting to $75,000 is to be paid in the following month. What will be the journal entry to record the payment of salaries

Answer 1

Answer and Explanation:

The journal entry is

Salaries and Wages Payable $50,000

Salaries and Wages Expense $25,000

           To Cash $75,000

(Being cash paid is recorded)

Here salaries & wages payable and salaries & wages expense is debited as it decreased the liabilities & increased the expense while the cash is credited as it decreased the assets