A business pays weekly salaries of $30,000 on Friday for a five-day week ending on that day.The adjusting entry necessary at the end of the fiscal period ending on a Thursday is

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The adjusting entry is necessary to record the portion of the weekly salaries earned by the employees for the two days (Thursday and Friday) that fall after the end of the fiscal period. The total weekly salaries paid are $30,000 for five days, which means the daily wage rate is $30,000/5 = $6,000. Therefore, the portion earned by the employees for two days is $6,000 x 2 = $12,000. This amount should be recorded as an expense and as a liability since it has not yet been paid. Therefore, the adjusting entry should be to debit Salaries and Wages Expense for $12,000 and credit Salaries and Wages Payable for $12,000.

A Business Pays Weekly Salaries of $30,000 on Friday for a Five-Day