Question

Assume that an adjusting entry was made on November 30, 2021 for earned, but unpaid employee salaries of $260 which represented 2 days of salaries earned for November 29-30.

On December 5, the employees are paid for five days. Record the journal entry on December 5 assuming that reversing entries ARE NOT used by selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns.

Answer 1

The accounting question involves recording a journal entry for salary expenses and liabilities, where a prior adjusting entry exists, without the use of reversing entries.

Step-by-step explanation:

The question involves the recording of salary expenses and the corresponding liabilities in financial accounting. When employees are paid on December 5 for five days, which includes the two days (November 29-30) for which an adjusting entry had already been made, the journal entry is as follows:

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• Debit Salaries Expense for three days (since two days were already accounted for as of November 30).
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• Debit Salaries Payable for the two days of salaries that had been accrued on November 30.
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• Credit Cash for the total payment to employees for five days.

It is important to note that since reversing entries are not used, the prior accrual for two days must be cleared when the actual payment is recorded.