Carter, Inc. paid salaries expense of $292,000 during 2015. However, additional salaries of $14,000 had been earned by employees, but not paid or recorded at December 31, 2015 by Carter.
A What is the effect on the accounting equation of the adjusting entry necessary at December 31, 2015?
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, 2015?
D Under the accrual basis of accounting, what is the total amount of salaries payable to be reported at December 31, 2015?
E Under the cash basis of accounting, what is the total amount of salaries expense for the year ending December 31, 2015?
F Under the cash basis of accounting, what is the total amount of salaries payable at December 31, 2015?

Question

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The Answer of Carter, Inc. paid salaries expense of $292,000 during 2015. However, additional salaries of $14,000 had been earned by employees, but not paid or recorded at December 31, 2015 by Carter.
A What is the effect on the accounting equation of the adjusting entry necessary at December 31, 2015?
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, 2015?
D Under the accrual basis of accounting, what is the total amount of salaries payable to be reported at December 31, 2015?
E Under the cash basis of accounting, what is the total amount of salaries expense for the year ending December 31, 2015?
F Under the cash basis of accounting, what is the total amount of salaries payable at December 31, 2015?