Jo Smith earned a salary of $540 for the last week of June. She is due to be paid for this work on 2^nd July. The adjusting entry for Jo's employer at 30 June is:

Question

Quizplus · Accepted Answer

The adjusting entry is needed to recognize the expense and liability that Jo's salary represents for the last week of June. Since Jo has earned the salary but has not yet been paid, the adjusting entry will increase Salaries Expense (debit) and Salaries Accrued (credit) by $540. This will ensure that the expense is recognized in the correct accounting period and that the liability is properly recorded. Option A is incorrect because it debits Salaries Accrued instead of Salaries Expense, which would understate the expense and overstate the liability. Option C is incorrect because it credits Cash instead of Salaries Expense, which would overstate the amount of cash paid. Option D is incorrect because it does not account for the fact that Jo has not been paid yet and therefore should not be credited to Cash. Option E is incorrect because there is a need for an adjusting entry to recognize the salary expense and liability.

Jo Smith Earned a Salary of $540 for the Last