The adjusting entry at the end of an accounting period to record the unpaid salaries of employees for work provided is:
A)Debit Unpaid Salaries and credit Salaries Payable.
B)Debit Salaries Payable and credit Salaries Expense.
C)Debit Salaries Expense and credit Cash.
D)Debit Salaries Expense and credit Salaries Payable.
E)Debit Cash and credit Salaries Expense.

Question

Quizplus · Accepted Answer

The adjusting entry to record unpaid salaries at the end of an accounting period involves debiting Salaries Expense and crediting Salaries Payable. This is because the employees have already earned the salaries but they have not yet been paid, therefore, the amount owed to them is recorded as a liability in the Salaries Payable account. The Salaries Expense is debited to recognize the expense for the period, regardless of whether or not the salaries have been paid. Option D correctly describes this adjusting entry.

The Adjusting Entry at the End of an Accounting Period