Question

Record the necessary entries in the Journal Entry Worksheet below

a. Fighting Irish Incorporated pays its employees $5,600 every two weeks ($400/day). The current two-week pay period ends on December 28, 2015, and employees are paid $5,600. Record the adjusting entry on December 31, 2015.
b. Fighting Irish Incorporated pays its employees $5,600 every two weeks ($400/day). The current two-week pay period ends on December 28, 2015, and employees are paid $5,600. The next two-week pay period ends on January 11, 2016, and employees are paid $5,600. Record the payment of salaries.
c. Calculate the 2015 year-end adjusted balance of Salaries Payable (assuming the balance of Salaries Payable before adjustment in 2015 is $0).

Answer 1

Explanation:

The journal entries are shown below:

1. Salaries expense A/c Dr $1,200       ($400 × 3 days)

      To Salary payable A/c Dr $1,200

(Being the accrued salary is recorded)

The 3 days are calculated from December 28 to December 31

2. Salaries expense A/c Dr $4,400         ($400 × 11 days)

Salary payable A/c Dr $1,200

                       To Cash A/c $5,600

(Being the payment is recorded)

3. Now the adjusted balance of Salaries Payable is

= Salaries Payable before adjustment in 2015 + Adjusted balance

= $0 + $1,200

= $1,200