Question

Which of the following journal entries should a government use to record $475,000 for police department salaries and wages during a particular month?

a. Debit: Expenditures $475,000
Credit: Vouchers Payable $475,000
b. Debit: Salaries & Wage Expense $475,000
Credit: Encumbrances $475,000
c. Debit: Encumbrances $475,000
Credit: Vouchers Payable $475,000
d. Debit: Salaries & Wage Expense $475,000
Credit: Appropriations $475,000

Answer 1

The correct journal entry to record $475,000 for police department salaries and wages is to debit Expenditures and credit Vouchers Payable.

Step-by-step explanation:

The correct journal entry to record $475,000 for police department salaries and wages would be:

• Debit: Expenditures $475,000
• Credit: Vouchers Payable $475,000

This entry debits the Expenditures account, which represents the cost of running the police department, and credits the Vouchers Payable account, which represents the amount owed to employees for their salaries and wages. This accurately reflects the transaction and ensures proper accounting of the expenses.