Answer to Question #261970 in Accounting for meme

Question

Dec 31At December 31, 2019, P230,000 of the salaries have accrued. Assuming that payday is onJanuary 4, 2020 and P620,000 in salaries were paid on that date.

Required:

1.Assume that the transacons were inially recorded in the balance sheet accounts, record theadjusng entries. Also, record the January 4, 2020payment of salaries.

2.Now, assume that these transacons were inially recorded in income statement accounts,record the adjusng entries. Also, record the January 1, 2020 reversing entry and January 4,2020 payment of salaries.

Answer 1

1. Adjusting entries assuming transactions were initially recorded in the balance sheet accounts are as follows:

Salaries expenses=Cash A\C-salaries payable

=D7-C6

=P620,000-P230,000=P390,000

2. Adjusting and reversal entries assuming transactions were initially recorded in the income statement are as follows: