Question

Rebecca Company paid salaries of $20,000 during the year. In addition, $8,800 in salaries has accrued by

the end of the year but has not been paid. The year-end adjusting entry would include which one of the
following?
a. Credit to Salaries Expense of $8,800
b. Credit to Salaries Payable for $8,800
c. Debit to Salaries Expense for $28,800
d. Debit to Salaries Payable for $8,800

Answer 1

The correct year-end adjusting entry for Rebecca Company includes debiting Salaries Expense for $8,800 and crediting Salaries Payable for $8,800, to reflect the accrued salaries that have not been paid by the year-end.

Step-by-step explanation:

The question pertains to an accounting scenario involving Rebecca Company's year-end adjusting entry. When a company has accrued expenses that have not been paid by the end of the accounting period, it must recognize the expenses in that period. This means it must record the expense and the liability. In this case, the company accrued additional salaries of $8,800. The correct year-end adjusting entry would be to debit Salaries Expense for $8,800, which represents the expenses incurred during the period, and to credit Salaries Payable for $8,800, which represents the amount of the liability or the obligation to pay that amount in the future.