Question

Hickory Park Senior Center has a weekly payroll of $20,000. December 31 falls on Monday, and Hickory Park Senior Center will pay its employees the following Monday (January 7) for the previous full week. Assume Hickory Park Senior Center has a five-day workweek and has an unadjusted balance in Salaries Expense of $530,000 Read the tequirements Requirement 1. Record the adjusting entry for accrued salaries on December 31. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Dec. 31

Answer 1

a.

Date Account Title and Explanation Debit Credit Dec-31 Salaries Expense $4,000 Salaries Payable $4,000

Working Note:

Weekly Payroll = $20,000

Working Day = 5

Salaries expense per work Day = $4,000 ($20,000/5)

Since on 31st December day falls Monday therefore only for 1 day payroll will be recognize on Dec. 31

b.

Salaries Payable Dec. 31 $4,000 End. Bal. $4,000 Salaries Expense Beg. Bal. $530,000 Dec. 31 $4,000 End. Bal $534,000

c.

Credit Date Account Title and Explanation Debit Jan-07 Salaries Expense $20,000 Salaries Payable $4,000 Cash $24,000

Note: on Jan-07 the salaries expense of 1st week of January will also paid which included Tuesday to Monday i.e. 07 jan.

I hope this clear your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

Do give a thumbs up if you find this helpful.