If accrued salaries were recorded on December 31 with a debit to Salaries Expense and a credit to Salaries Payable,the entry to record payment of these wages on the following January 5 would include:
A)A debit to Cash and a credit to Salaries Payable.
B)A debit to Cash and a credit to Prepaid Salaries.
C)A debit to Salaries Payable and a credit to Cash.
D)A debit to Salaries Payable and a credit to Salaries Expense.
E)No entry would be necessary on January 5.

Question

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Since the accrued salaries were recorded with a credit to Salaries Payable, we need to decrease or offset this liability by debiting it when we pay the wages. The corresponding credit will be to Cash, as we are paying the employees. Option A, D and E are incorrect as they either debit an incorrect account or do not record the transaction at all. Option B is also incorrect as there is no concept of prepaid salaries in accounting.

If Accrued Salaries Were Recorded on December 31 with a Debit