Problem

Journalizing reversing entries [20 min] Refer to the data in Problem 4-32 B. Requireme...

Journalizing reversing entries [20 min]

Refer to the data in Problem 4-32 B.

Requirements

1. Open accounts for Salary payable and Salary expense. Insert their unadjusted balances at July 31, 2011.

2. Journalize adjusting entry (e) and the closing entry for Salary expense at July 31. Post to the accounts.

3. On August 5, Wolfe Anvils paid the next payroll amount of $600. This payment included the accrued amount at July 31, plus $400 for the first few days of August. Journalize this cash payment, and post to the accounts. Show the balance in each account.

4. Using a reversing entry, repeat requirements 1—3. Compare the balances of Salary payable and Salary expense after using a reversing entry with those balances computed without the reversing entry (as they appear in your answer to requirement 3).

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