Question

Saved Exercise 2-21 (Algo) Reversing entries (Appendix 2B] 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 earned evenly throughout the five-day work week, and $29,000 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. Book Complete this question by entering your answers in the tabs below. Print Required 1 Required 2 eferences 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Record the accrued salaries as of June 30. hace: Enter Essefore credits ebit Credit

Answer 1

Solution:

Answer 1. Below is the journal entries required on June 30, July 1 and July 2

Date General Journal 30-Jun Salaries and wages expense Salaries and wages payable Debit Credit Working 17400 29000*3/5 17400 17400 1-Jul Salaries and wages payable Salaries and wages expense 17400 29000 2-Jul Salaries and wages expense Cash 29000

Answer 2.Journal entries assuming a reversing entries is not recorded:

Date General Journal 30-Jun Salaries and wages expense Salaries and wages payable Debit Credit Working 17400 29000*3/5 17400 2-Jul Salaries and wages expense Salaries and wages payable Cash 11600 17400 29000*2/5 29000*3/5 29000