Question

g A company shows a balance in Salaries and Wages Payable of $50,000 at the end of the month. The next payroll amounting to $75,000 is to be paid in the following month. What will be the journal entry to record the payment of salaries

Answer 1

The journal entry to record the payment of salaries can be done by debiting the Salaries and Wages Payable account for $75,000 and crediting the Cash account for the same amount.

Step-by-step explanation:

The journal entry to record the payment of salaries can be done by debiting the Salaries and Wages Payable account for $75,000 and crediting the Cash account for the same amount.

The journal entry would be as follows:

Date: [Date of payment]

Salaries and Wages Payable $75,000 (Debit)

Cash $75,000 (Credit)

This entry reflects the decrease in the Salaries and Wages Payable balance and the corresponding increase in the Cash balance.

Answer 2

Answer and Explanation:

The journal entry is

Salaries and Wages Payable $50,000

Salaries and Wages Expense $25,000

To Cash $75,000

(Being cash paid is recorded)

Here salaries & wages payable and salaries & wages expense is debited as it decreased the liabilities & increased the expense while the cash is credited as it decreased the assets