Question

Crane Company pays salaries of $10,630 every Monday for the preceding 5-day week (Monday through Friday). Assume December 31 falls on a Tuesday, so Crane’s employees have worked 2 days without being paid at tAssume the company does not use reversing entries. Prepare the December 31 adjusting entry and the entry on Monday, January 6, when Crane pays the payroll. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)he end of the fiscal year

Exercise 4-18 a-b (Part Level Submission) Crane Company pays salaries of $10,630 every Monday for the preceding 5-day week (Monday through Friday). Assume December 31 falls on a Tuesday, so Crane's employees have worked 2 days without being paid at the end of the fiscal year. (a) Assume the company does not use reversing entries. Prepare the December 31 adjusting entry and the entry on Monday, January 6, when Crane pays the payroll. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles Debit Credit Dec. 31 Owner's Capital 10630 Salaries and Wages Expense 10630 Jan. 6 SHOW LIST OF ACCOUNTS

Answer 1

Solution:

Η Ι Ι AR SK 64 65 66 67 Credit Date Account Title 31-Dec Salaries and wages expense(10630*2/5) salaries and wages payable Debit $4,252 68 $4,252 70 71 72 73 74 06-Jan Salaries and wages expense(10630*3/5) Salaries and wages payable Cash $6,378 $4,252 $10,630 75 76 77 78 79 80 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 eet41 Sheet775 (2) ) Sheet43 ) Sheet48 Sheet50