Question

A company recorded 2 days of accrued salaries of $1,650 for its employees on January 31. On February 9, it paid its employees $7,500 for these accrued salaries and for other salaries earned through February 9. Assuming the company does not prepare reversing entries, the January 31 and February 9 journal entries are:

Answer 1

Answer:

January 31

Dr Salary expenses $ 1,650

Cr Salary Payable $ 1,650

February 9

Dr Salary expenses $ 5,850

Cr Salary Payable $ 1,650

Cr Cash $ 7,500

Explanation:

Preparation of the journal entries for January 31 and February 9

January 31

Dr Salary expenses $ 1,650

Cr Salary Payable $ 1,650

( To record actual salary payable )

February 9

Dr Salary expenses $ 5,850

($7,500-$1,650)

Cr Salary Payable $ 1,650

Cr Cash $ 7,500

(To record total salaries paid with accrued salary of January)