7TI-2 - Horngren'S Financial And Managerial Accounting

Question

Winters Landscape Services accrued \(4,000 of Salaries Expense at December 31. Winters paid the next payroll at January 10 of

\)6,000. This payment included the accrued amount at December 31, plus $2,000 for the first few days of January.

24A. Record the reversing entry.

Step-by-Step Solution

Answer

Reversing entry is as follows:

Date	Accounts and Explanation	Debit	Credit
Jan. 1	Salaries Payable	$4,000
	Salaries Expense		$4,000
	To reverse the salaries adjusting entry.

Explanation on Reversing Entry

Reversing entry is recorded to record the reverse effect of previous entry made in the books of accounts.

Explanation on Reversal Entry

Reversal entry will be recorded by debiting salary payable and crediting salaries expense by $4,000, respectively.