A business pays biweekly salaries of $20,000 every other Friday for a ten-day period ending on that day. The adjusting entry necessary at the end of the fiscal period ending on the second Wednesday of the pay period includes a
A) debit to Salary Expense of $8,000
B) debit to Salaries Payable of $8,000
C) credit to Salary Expense of $16,000
D) credit to Salaries Payable of $16,000

Question

Quizplus · Accepted Answer

Salary expense per day = $20,000 / 10 = $2,000
Salary expense accrued on the second Wednesday of the pay period = $2,000 × 8 days = $16,000
Debit Credit
Salary Expense 16,000
$\quad $  $\quad $  $\quad $  $\quad $  Salaries Payable 16,000

A Business Pays Biweekly Salaries of $20,000 Every Other Friday