Jill Clown earned a salary of $500 for the last week of October.She will be paid on November 1.The adjustment for Jill's employer October 31 is:

Question

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Since Jill has earned her salary for the last week of October but will not be paid until November 1, her salary expense needs to be recognized in October. This is done by increasing Salaries and Wages Expense by $500. At the same time, since the payment to Jill will not be made until November 1, the $500 is owed to her and should be recognized as a liability. Therefore, Salaries and Wages Payable should also be increased by $500. This will ensure that the financial statements for October reflect the total expense incurred by the company for Jill's services.

Jill Clown Earned a Salary of $500 for the Last