Question

The employees of Xitrex, Inc., are paid each Friday. The company's fiscal year-end is June 30, which falls on a Wednesday for the current year. Salaries are eamed evenly throughout the five-day work week, and $14,000 will be paid on Friday, July 2, Required: 1. Prepare an adjusting entry to record the accrued salaries as of June 30, a reversing entry on July 1, and an entry to record the payment of salaries on July 2. 2. Prepare journal entries to record the accrued salaries as of June 30 and the payment of salaries on July 2 assuming a reversing entry is not recorded. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an adjusting entry record the accrued salaries as of June 30, a reversing entry on July 1, and an entry to record the payment of salaries on July 2. (If no entry is required for a transaction/event, select "No joumal entry required" in the first account field.) View transaction list Journal entry worksheet 2. 3 > Record the accrued salaries as of June 30. Note: Enter debits before credits General Journal Debit Credit Date June 30 Racord entry Clear entry View general joumal

Answer 1

Salaries expense for 5 days = $14,000

Salaries payable on June 30 (For 3 days) = 14,000 x 3/5

= $8,400

1.

Journal

Date	Account Title and Explanation	Debit	Credit
June 30	Salaries expense	8,400
	Salaries payable		8,400
	(To record salaries payable)
July 1	Salaries payable	8,400
	Salaries expense		8,400
	(To record reversal of salaries payable)
July 2	Salaries expense	14,000
	Cash		14,000
	(To record payment of salaries)

2

Journal

Date	Account Title and Explanation	Debit	Credit
June 30	Salaries expense	8,400
	Salaries payable		8,400
	(To record salaries payable)
July 2	Salaries expense	5,600
	salaries payable	8,400
	Cash		14,000
	(To record payment of salaries)