The employees of Neat Clothes work Monday through Friday. Every other Friday the company issues payroll checks totaling $22,000. 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?

Question

Business

Katie Oneal

3 January, 13:48

The employees of Neat Clothes work Monday through Friday. Every other Friday the company issues payroll checks totaling $22,000. 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?

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Rocco Arroyo · Answer 1

Salaries expense A/c Dr $15,400

To Salaries payable A/c $15,400

(Being the accrued salaries is recorded)

Explanation:

The adjusting entry is shown below

Salaries expense A/c Dr $15,400

To Salaries payable A/c $15,400

(Being the accrued salaries is recorded)

The computation is shown below:

= $22,000 * 7 days : 10 days

= $15,400

The 10 days is comprised of 2 weeks that reflects 5 days in one week as it is given every other Friday

Out of which, 3 days are already taken from July 1 to July 3