A company recorded 2 days of accrued salaries of $1,400 for its employees on January 31.On February 9,it paid its employees $7,000 for these accrued salaries and for other salaries earned through February 9.The January 31 and February 9 journal entries are:
A)1/31 Salaries Expense ………………………… 1,400 Salaries Payable …………................1,400
2/9 Salaries Payable ………………………….7,000
Salaries Expense ………………………… 1,400
Cash..………………………………… 7,000
B)1/31 Salaries Payable …………………………..1,400 Salaries Expense……………………...1,400
2/9 Salaries Expense…………………………..5,600
Salaries Payable…………………………...1,400
Cash…………………………………...7,000
C)1/31 Salaries Expense…………………………..1,400 Cash…………………………………..1,400
2/9 Salaries Expense………………………….7,000
Cash………………………………….7,000
D)1/31 Salaries Expense………………………….1,400 Salaries Payable……………………...1,400
2/9 Salaries Expense…………………………..7,000
Cash…………………………………...7,000
E)1/31 Salaries Expense………………………….1,400 Salaries Payable……………………… 1,400
2/9 Salaries Expense…………………………..5,600
Salaries Payable…………………………...1,400
Cash…………………………………...7,000

Question

Quizplus · Accepted Answer

On January 31, the company accrues $1,400 as Salaries Expense and credits Salaries Payable. On February 9, it pays $7,000, which includes the $1,400 accrued and $5,600 for additional salaries. Thus, the February 9 entry debits Salaries Expense for $5,600, debits Salaries Payable for $1,400, and credits Cash for $7,000.

A Company Recorded 2 Days of Accrued Salaries of $1,400