Question

At December 31, 2021, Pharoah Company made an accrued expense adjusting entry of $1,820 for salaries. On January 4, 2022, it paid salaries of $3,140: $1,820 for December salaries and $1,320 for January salaries.

Answer 1

	Journal entry in the books of Pharoah Company
	Date	Description	Debit	Credit
		Salaries expenses	$     1,820
	December 31, 2021	Salaries payable		$     1,820
		(Being accruing of salary recorded for December)
	January 4, 2022	Salaries expenses	$     1,320
		Salaries payable	$     1,820
		Cash / Bank		$     3,140
		(Being salary expenses accrued and current year paid)