Chastain Park Entertainment paid salaries expense of $350,000 during 2019. However, additional salaries of $20,000 had been earned by employees, but not paid or recorded at December 31, 2019.
A)What adjusting entry is necessary at December 31, 2019?
B)Under which basis, cash, accrual, or both, would the adjustment in part A be prepared? Explain.
C)Under the accrual basis of accounting, what is the total amount of salaries expense for the year ended December 31, 2019?
D)Under the accrual basis of accounting, what is the total amount of salaries payable to be reported at December 31, 2019?
E)Under the cash basis of accounting, what is the total amount of salaries expense for the year ending December 31, 2019?
F)Under the cash basis of accounting, what is the total amount of salaries payable at December 31, 2019?
Correct Answer:
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