A business pays biweekly salaries of $20,000 every other Friday for a ten-day period ending on that day.The last payday of December is Friday,December 27.Assume the next pay period begins on Monday,December 30 and the proper adjusting entry is journalized at the end of the fiscal period December 31.The entry for the payment of the payroll on Friday,January 10 includes a
A)debit to Salary Expense of $16,000
B)debit to Salary Expense of $4,000
C)credit to Salary Payable of $16,000
D)credit to Salary Payable of $4,000

Question

Quizplus · Accepted Answer

The payment on January 10 includes a debit to Salary Expense for the four days in January (January 1-4), which is $4,000, and a debit to Salary Payable for the six days in December (December 30-31), which is $16,000.

A Business Pays Biweekly Salaries of $20,000 Every Other Friday