Answer to Question #228375 in Accounting for Eyu

Question

Connect Realty Co. pays weekly salaries of $16,250 on Friday for a five-day workweek
ending on that day. Journalize the necessary adjusting entry at the end of the accounting
period, assuming that the period ends on Wednesday�

Answer 1

Solution:

Weekly salary = 16,250

Daily salary = $\frac{16,250}{5} = 3,250$

Multiply daily salary by the adjusting period (Wednesday), which is 3 days:

=3,250 $\times$ 3 = 9,750

Adjusting entry:

Dr. Salaries expense A/c                                                          9,750

                       Cr. Salary payable A/c                                                                    9,750

(To record salary expense incurred during the year and not yet paid)