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he employees of Neat Clothes work Monday through Friday. Every other Friday the company issues payroll checks totaling $24,000. The current pay period ends on Friday, July 3. Neat Clothes is now preparing quarterly financial statements for the three months ended June 30. What is the adjusting entry to record accrued salaries at the end of June

User Triangle
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Answer:

Debit Salary Expense $16,890

Credit Salary Payable $16,800

Step-by-step explanation:

Accrued expenses are recognised at the end of an accounting period in obedience to the accrual method. All revenues and expenses are to be recognised when they are earned or incurred. The salaries that had accrued at the end of June will have to be recognised by debiting Salary Expense.

The next salary of $24,000 will be paid on July 3. The normal period for payment is 7 days. Days till pay is 7+3 days from July= 10days

$24,000 is payable in 10 days

$ x (accrued wages) will be payable in 7 days

Cross-multiply

$ x= 24,000*(7/10)

$ x= $16,800

User Buddhima Gamlath
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