company pays its employees $5,600 every two weeks ($400/day). The current two-week pay period ends on December 26, 2010, and employees are paid $5,600. The next two-week pay period ends on January 9, 2011, and employees will be paid $5,600. Record the adjusting entry on December 31, 2010.

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Business

Maggie Cox

30 July, 15:51

company pays its employees $5,600 every two weeks ($400/day). The current two-week pay period ends on December 26, 2010, and employees are paid $5,600. The next two-week pay period ends on January 9, 2011, and employees will be paid $5,600. Record the adjusting entry on December 31, 2010.

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Dalton Knox · Answer 1

Debit Credit

Salaries expense $2,000

($400*5)

Salaries payable $2,000

Explanation:

The adjusting entry that shall be booked by the company in respect of salaries expense to be recorded in its accounts on December 31, 2010 is given below:

Debit Credit

Salaries expense $2,000

($400*5)

Salaries payable $2,000

Where the "5" represent the number of days from the December 27,2010 to the December 31,2010.