A business pays salaries of $140 000 on the first and fifteenth day of every month. Which of the following is the adjusting entry required on 30 June 2014?
A)A debit of $140 000 to Salaries expense and a credit of $140 000 to Salaries receivable.
B)A debit of $140 000 to Salaries expense and a credit of $140 000 to Salaries payable.
C)A debit of $140 000 to Salaries receivable and a credit of $140 000 to Salaries payable.
D)No adjusting entry is required.

Question

Quizplus · Accepted Answer

The adjusting entry on June 30 is needed to recognize the salaries expense incurred but not yet paid, hence a debit to Salaries expense and a credit to Salaries payable.

A Business Pays Salaries of $140 000 on the First