Silicon Chip Company's fiscal year-end is December 31. At the end of 2018, it owed employees $22,000 in salaries and wages that will be paid on January 7, 2019.
Required:
1. Prepare an adjusting entry to record accrued salaries and wages, a reversing entry on January 1, 2019, and an entry to record the payment of salaries and wages on January 7, 2019.
2. Prepare journal entries to record the accrued salaries and wages on December 31, 2018 and the payment of salaries and wages on January 7, 2019, assuming a reversing entry is not recorded.

Question

Quizplus · Accepted Answer

The Answer of Silicon Chip Company's fiscal year-end is December 31. At the end of 2018, it owed employees $22,000 in salaries and wages that will be paid on January 7, 2019.
Required:
1. Prepare an adjusting entry to record accrued salaries and wages, a reversing entry on January 1, 2019, and an entry to record the payment of salaries and wages on January 7, 2019.
2. Prepare journal entries to record the accrued salaries and wages on December 31, 2018 and the payment of salaries and wages on January 7, 2019, assuming a reversing entry is not recorded.

Silicon Chip Company's Fiscal Year-End Is December 31