Question

Buster Industries pays weekly salaries of $41,100 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Tuesday is:A) debit Salaries Payable, $16,440; credit Cash, $16,440.B) debit Dividends, $16,440; credit Cash, $16,440. C) debit Salary Expense, $16,440; credit Salaries Payable, $16,440. D) debit Salary Expense, $16,440; credit Dividends, $16,440.

Answer 1

C) debit Salary Expense, $16,440; credit Salaries Payable, $16,440

Step-by-step explanation:

The adjusting entry is as follows

Salaries expense Dr $16,440

To Salaries payable $16,440

(Being the salary expense is recorded)

The computation is shown below:

= $41,100 × 2 days ÷ 5 days

= $16,440

While recording this we debited the salaries expense and credited the salary payable as it increased the expenses and liabilities account