If accrued salaries were recorded on December 31 with a credit to Salaries Payable, the entry to record payment of these wages on the following January 5 would include:
A) A debit to Cash and a credit to Salaries Payable.
B) A debit to Cash and a credit to Prepaid Salaries.
C) A debit to Salaries Payable and a credit to Cash.
D) A debit to Salaries Payable and a credit to Salaries Expense.
E) No entry would be necessary on January 5.

Question

Quizplus · Accepted Answer

Since the accrued salaries were already recorded on December 31 with a credit to Salaries Payable, the payment made on January 5 would reduce the Salaries Payable account. This means the entry would require a debit to Salaries Payable to reduce the liability and a credit to Cash to reflect the payment made. Therefore, option C is the correct answer.

If Accrued Salaries Were Recorded on December 31 with a Credit