Question

Adjustment for Accrued Expense

Joos Realty Co. pays weekly salaries of $17,250 on Friday for a five-day workweek ending on that day. Journalize the necessary adjusting entry assuming that the accounting period ends on Tuesday.
If an amount box does not require an entry, leave it blank. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6

Answer 1

Answer and Explanation:

The adjusting entry is shown below:

Salary expense Dr ($17,250 ÷ 5 days × 2 days) $6,900

To Salary payable $6,900

(Being salary expense is recorded)

here salary expense is debited as it increased the expense and credited the salary payable as it also increased the liabilities