Question

A company pays each of its two office employees each Friday at the rate of $230 per day for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is:

Answer 1

Answer:

Debit Salaries expense for $920

Credit Salaries payable for $920

Explanation:

The salary payable can be calculated as follows:

Number of employees = 2

Daily salary expense for one employee = $230

Number days worked by the employee but yet to be paid for = 2

Salary payable for 2 days = Number of employees * Daily salary expense for one employee * Number days worked by the employee but yet to be paid for = 2 * $230 * 2 = $920

Therefore, the month-end adjusting entry to record the salaries earned but unpaid is as follows:

Account title                     Debit ($)             Credit ($)      

Salaries expense                  920

Salaries payable                                               920

(To record the amount salaries expense for 2 days.)