During the year, Cheng Company paid salaries of $23,100. In addition, $9,300 in salaries has accrued by the end of the year but has not been paid. The year-end adjusting entry would include which one of the following? a) Credit to salaries payable for $9,300

b) Credit to salaries expense of $9,300

c) Debit to salaries payable for $23,100

d) Debit to salaries expense for $32,300

Question

Business

Evony

8 August, 11:17

During the year, Cheng Company paid salaries of $23,100. In addition, $9,300 in salaries has accrued by the end of the year but has not been paid. The year-end adjusting entry would include which one of the following? a) Credit to salaries payable for $9,300

b) Credit to salaries expense of $9,300

c) Debit to salaries payable for $23,100

d) Debit to salaries expense for $32,300

+3

Answers (1)

Know the Answer?

Virginia Nolan · Answer 1

a) Credit to salaries payable for $9,300

Explanation:

Accrued salaries is a liability account because it represents an obligation that the company will have to pay in the near future. The journal entry for this transaction would be:

Account Debit Credit

Salaries Expense $9,300

Salaries Payable $9,300