Final answer:
To record the payroll at year-end October 31 for unpaid days after the last payment on October 28, we debit Salaries Expense and credit Salaries Payable with the total accrued salary of $10,500, which covers 7 days of work at a daily rate of $1,500.
Step-by-step explanation:
Understanding Payroll Accounting
To address the transaction where employees are paid on average $1,500 per day and work 7 days a week with a year-end of October 31, and the last payment was made on October 28 for the two weeks ended on October 24, we need to record the accrued salaries for the remaining days of October (October 25 to October 31). Assuming there are no additional factors such as overtime or bonuses, the journal entry required for the accrued salaries would be:
Debit Salaries Expense for the total amount accrued,
Credit Accrued Salaries or Salaries Payable for the same amount.
We calculate the total amount accrued by multiplying the daily pay rate by the number of days unpaid. For example, if the daily pay is $1,500 and there are 7 days of work (from October 25 to October 31), the total accrued would be $1,500 * 7 = $10,500. Hence, the journal entry would be:
Salaries Expense: $10,500
Salaries Payable: $10,500
This entry reflects the obligation to pay employees for services rendered during the period, even though the cash payment will occur after the year-end.