7TI-3
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.
25A. Journalize the cash payment
Step-by-Step Solution
Verified Answer
Journal entry is as follows:
Date | Accounts and Explanation | Debit | Credit |
Jan. 10 | Salaries Expense | $6,000 |
|
| Cash |
| $6,000 |
| To record payment of salaries |
|
|
1Explanation on Salaries Expense
Salaries expense indicates the total cost incurred on the labor part of the total business process.
2Explanation on Reversal Entry
Cash payment of salaries will be recorded by debiting salary expense and crediting cash by $6,000, respectively.
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