Accrued salaries at 12/31/13 are $2,000.The adjusting entry would include

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Accrued salaries means that the company owes its employees money at the end of the accounting period. Therefore, the adjusting entry needs to increase the Salaries Payable account (a liability) and decrease the Retained Earnings through Salaries Expense. This means that there needs to be a credit to Salaries Payable for $2,000 (to increase the balance in the account) and a debit to Salaries Expense for $2,000 (to recognize the expense in the current period). Option C is the only choice that provides a credit to salaries payable.

Accrued Salaries at 12/31/13 Are $2,000