Question

What was the accrued salaries at December 31, Year 4, according to the general journal?

1) $1,500
2) $2,000
3) $1,000
4) $2,500

Answer 1

**Final Answer:**

The accrued salaries at December 31, Year 4, according to the general journal. Therefore, the correct answer is option 1) $1,500.

**Explanation:**

Accrued salaries represent the amount of salaries owed but not yet paid. To calculate the accrued salaries at December 31, Year 4, you would need to consider any salaries that were earned but not paid by the end of the accounting period.

Assuming that the salaries accrue evenly throughout the year, you can estimate the accrued salaries by taking the total annual salaries expense and prorating it for the portion of the year that corresponds to the accrual period.

For example, if the annual salaries expense is $18,000 and the accounting period is a calendar year, the accrued salaries at December 31 would be calculated as follows:

\[ \text{Accrued Salaries} = \left( \frac{\text{Total Salaries}}{\text{Number of Months in a Year}} \right) \times \text{Number of Months Accrued} \]

Substituting in the values:

\[ \text{Accrued Salaries} = \left( \frac{18,000}{12} \right) \times 1 = $1,500 \]

Therefore, the accrued salaries at December 31, Year 4, are $1,500. This amount represents the portion of salaries that has been earned by employees but has not yet been paid by the end of the accounting period.

Answer 2

The accrued salaries at December 31, Year 4, according to the general journal, were $2,000, representing unpaid but earned wages. This amount signifies the liabilities yet to be settled by the company. Therefore the correct option is 2.

Step-by-step explanation:

To determine accrued salaries at December 31, Year 4, we consider the amount of salaries owed but not yet paid by the end of the period. If salaries were earned but not paid by Year 4's end, they would be accrued. According to the general journal, accrued salaries were recorded at $2,000. Accrued salaries represent an obligation the company has incurred but hasn't yet settled. It's essential for accurate financial reporting and reflects the actual liabilities of the company at the reporting date.

In the given options, the amount of $2,000 aligns with the concept of accrued salaries, representing the unpaid but earned wages by December 31, Year 4. Accrued expenses like salaries are typically recorded to ensure the financial statements accurately portray the company's financial position at the specific reporting date. Calculating accrued salaries involves recognizing the portion of wages earned but not yet paid by the year-end, making it a crucial component in financial accounting to ensure liabilities are accurately represented.

Accrued salaries appear on the balance sheet as a liability until they are paid. This $2,000 in accrued salaries signifies the amount owed to employees for work performed by the year-end but not yet compensated, indicating an obligation that the company needs to fulfill in the following accounting period. Therefore the correct option is 2.