7TI - 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.

23A. Record the adjusting entry to accrue Salaries Expense

Step-by-Step Solution

Answer

Adjusting entry is as follows:

Date	Accounts and Explanation	Debit	Credit
Dec. 31	Salaries Expense	$4,000
	Salaries Payable		$4,000
	To accrue salaries expense

Explanation on Adjusting Entries

Adjusting entries are the year end entries which records the accrued revenues and expenses of the business. 

Explanation on Entry

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