Question

The weekly payroll of Wolverine Corporation is $3,000. Employees work five days per week, Monday through Friday. December 31, 2019, the end of the fiscal year, is a Tuesday. Wolverine Corporation will not pay its employees for the full week until Friday, its normal payday. Wolverine Corporation will make which of the following adjusting entries on Tuesday, December 31?

a) Accounts:
Salaries Payable : Debit = 1,200
b) Accounts:
Salaries Expenses: Debit = 1,200
Accumulated Salaries: Credit = 1,200
c) Accounts:
Salaries Expense: Debit = 1,200
Cash: Credit = 1,200
d) Accounts:
Salaries Expense: Debit = 1,200
Salaries Payable : Credit = 1,200

Answer 1

The answer is: D) Accounts:

Salaries Expense: Debit = 1,200

Salaries Payable : Credit = 1,200

Step-by-step explanation:

Salaries expense is a type of expense account (all expense accounts are temporary accounts). When expenses are recorded, they should be debited.

• Debit record

Salaries expense 1,200

Salaries payable is a liability account. When liabilities increase, they should be credited.

• Credit record

Salaries payable 1,200