Employees were paid $10,000 on June 9, 2018 for five days work through Friday, June 3. What adjusting entry was necessary at the company's year-end, Tuesday, May 31, 2018, as a result of this?

Question

Quizplus · Accepted Answer

The adjusting entry needed would be to debit the Salaries and Wages Expense account for the amount of the five days worked but not yet paid ($4,000), and credit the Salaries and Wages Payable account because the payment was not made until after the year-end cut off (May 31). Therefore, choice D is the correct answer.

Employees Were Paid $10,000 on June 9, 2018 for Five