Ask Question
14 July, 19:15

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

+1
Answers (1)
  1. 14 July, 20:41
    0
    Debit Salary Expense $16,890

    Credit Salary Payable $16,800

    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
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “he employees of Neat Clothes work Monday through Friday. Every other Friday the company issues payroll checks totaling $24,000. The current ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers