Carter,Inc.paid salaries expense of $292,000 during 2017.However,additional salaries of $14,000 had been earned by employees,but not paid or recorded at December 31,2017 by Carter.
A. What is the effect on the accounting equation of the adjusting entry necessary at December 31,2017 ?

B. Under which basis, cash, accrual, or both, would the adjustment in part A be prepared? Explain.

C. Under the accrual basis of accounting, what is the total amount of sal aries expense for the year ended December 31,2017?

D. Under the accrual basis of accounting, what is the total amount of sal aries payable to be reported at December 31,2017 ?

E. Under the cash basis of accounting, what is the total amount of sal aries expense for the year ending December 31,2017 ?

F. Under the cash basis of accounting, what is the total amount of sal aries payable at December 31,2017 ?

Question

Carter,Inc.paid salaries expense of $292,000 during 2017.However,additional salaries of $14,000 had been earned by employees,but not paid or recorded at December 31,2017 by Carter.
  A. What is the effect on the accounting equation of the adjusting entry necessary at December 31,2017 ?

B. Under which basis, cash, accrual, or both, would the adjustment in part A be prepared? Explain.

C. Under the accrual basis of accounting, what is the total amount of sal aries expense for the year ended December 31,2017?

D. Under the accrual basis of accounting, what is the total amount of sal aries payable to be reported at December 31,2017 ?

E. Under the cash basis of accounting, what is the total amount of sal aries expense for the year ending December 31,2017 ?

F. Under the cash basis of accounting, what is the total amount of sal aries payable at December 31,2017 ?

Quizplus · Accepted Answer

The Answer of Carter,Inc.paid salaries expense of $292,000 during 2017.However,additional salaries of $14,000 had been earned by employees,but not paid or recorded at December 31,2017 by Carter.
  A. What is the effect on the accounting equation of the adjusting entry necessary at December 31,2017 ?

B. Under which basis, cash, accrual, or both, would the adjustment in part A be prepared? Explain.

C. Under the accrual basis of accounting, what is the total amount of sal aries expense for the year ended December 31,2017?

D. Under the accrual basis of accounting, what is the total amount of sal aries payable to be reported at December 31,2017 ?

E. Under the cash basis of accounting, what is the total amount of sal aries expense for the year ending December 31,2017 ?

F. Under the cash basis of accounting, what is the total amount of sal aries payable at December 31,2017 ?