Question

Canyon Realty Co. pays weekly salaries of $3,700 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 (a) on Wednesday and (b) on Thursday.

Answer 1

Canyon Realty Co. pays weekly salaries of $3,700 on Friday for a five-day workweek ending on that day. The necessary adjusting entry at the end of the accounting period assuming that the period ends:
(a) on Wednesday
Dr Salaries expense $2,220 (at $740 a day)
Cr Salaries payable $2,220
(b) on Thursday
Dr Salaries expense $2,960
Cr Salaries payable $2,960