A company pays its employees $5,600 every two weeks ($400/day). The current two-week pay period ends on December 26, 2012, and employees are paid $5,600. The next two-week pay period ends on January 9, 2013, and employees will be paid $5,600. Record the adjusting entry on December 31, 2012.

Question

Quizplus · Accepted Answer

Salaries Payable$\quad$2,000
 Salaries expense = $400 $\times$ 5 days = $2,000.

A Company Pays Its Employees $5,600 Every Two Weeks ($400/day)