At the end of the current fiscal year,an analysis of the payroll records of Bev Company showed accrued salaries of $22,200.The Accrued Salaries Payable account had a balance of $32,000 at the end of the current fiscal year,which was unchanged from its balance at the end of the prior fiscal year.The books of the company have not yet been closed.The entry needed in this situation would include a
A) debit to Retained Earnings of $9,800.
B) credit to Retained Earnings of $9,800.
C) debit to Accrued Salaries payable of $9,800.
D) debit to Salaries Expense of $9,800.

Question

Quizplus · Accepted Answer

The difference between the accrued salaries and the balance in the Accrued Salaries Payable account is $9,800 ($32,000 - $22,200). This means that $9,800 worth of salaries were paid out in the current fiscal year but were not yet recorded in the accounting books. Therefore, the entry needed to adjust for this would involve a debit to Accrued Salaries Payable for $9,800 to reduce the balance to the correct amount and reflect the salaries owed but not yet paid.

At the End of the Current Fiscal Year,an Analysis of the Payroll