Question

Adjusting Entries for Accrued Salaries Garcia Realty Co. pays weekly salaries of $47,500 on Friday for a five-day workweek ending on that day.

a. Journalize the necessary adjusting entry at the end of the accounting period assuming that the period ends on Tuesday.

b. Journalize the necessary adjusting entry at the end of the accounting period assuming that the period ends on Wednesday.

Answer 1

a.

Salaries expense for five days period = $47,500

Salaries expense for two days = 47,500 x 2/5

= $19,000

General Journal	Debit	Credit
Salaries expense	$19,000
Salaries payable		$19,000
( To record salaries expense)

b.

Salaries expense for five days period = $47,500

Salaries expense for three days = 47,500 x 3/5

= $28,500

General Journal	Debit	Credit
Salaries expense	$28,500
Salaries payable		$28,500
( To record salaries expense)

Kindly give a positive rating if you are satisfied with this solution and please ask if you have any query.

Thanks