10SE_2 - Horngren'S Financial And Managerial Accounting

Question

Question :Birch Park Senior Center has a weekly payroll of \(12,500. December 31 falls on Wednesday, and Birch Park Senior Center will pay its employees the following Monday (January 5) for the previous full week. Assume Birch Park Senior Center has a five-day workweek and has an unadjusted balance in Salaries Expense of \)620,000. Requirements 1. Record the adjusting entry for accrued salaries on December 31. 2. Post the adjusting entry to the accounts involved, and show their balances after adjustments. 3. Record the journal entry for payment of salaries made on January 5

Step-by-Step Solution

Answer

T accounts are as follows:

Salaries Payable
		7,500	Dec.31
		7,500	Bal.

Salaries Expense
	620,000
Dec.31	7,500
Bal.	627,500

Step-by-Step-Solution Step 1: Explanation on Salaries Payable

Salaries payable refers to the outstanding wages of the employees, that are unpaid.

Step 2: Explanation on T account

The ending balance of salaries payable account is $7,500, and salaries expense equals $627,500.