Question

Barans Realty Co. pays weekly salaries of $18,000 on Monday for a six-day workweek ending the preceding Saturday. Journalize the necessary adjusting entry at the end of the accounting period, assuming that the period ends on Friday. Round your answers to nearest whole dollar.

Answer 1

Barans Realty Co. Journal entry

Dr Salary expenses 15,000

Cr Salary payable 15,000

Step-by-step explanation:

Since Barans Realty Co. pays weekly salaries of $18,000 on Monday for a six-day workweek ending the preceding Saturday in which we have to as well assume that it ended on friday that means (18,000/6 ×5) will give us 15,000, we have to record it by Debiting salary expenses with 15,000 and Crediting salary payable with the same amount

Answer 2

The key thing to look at is that the period ends on FRIDAY.

If we count from Monday to Friday, that is 5 days apart.

We need to divide to find the daily salary.

18,000 / 6 = $3,000 per day

Multiply to find the total salary expense from Monday to Friday.

3,000 * 5 = $15,000

Now, we can assemble the journal entry.

We will have a salaries expense to debit for $15,000

We will also have a salaries payable to credit for $15,000

18,000 - 15,000 = $3,000 expense for the next accounting period.

Best of Luck!