Silicon Chip Company's fiscal year-end is December 31. At the end of 2013, it owed employees $22,000 in wages that will be paid on January 7, 2014.
Required:
1. Prepare an adjusting entry to record accrued salaries, a reversing entry on January 1, 2014, and an entry to record the payment of wages on January 7, 2014.
2. Prepare journal entries to record the accrued salaries on December 31 and the payment of salaries on January 7, assuming a reversing entry is not made.

Question

Quizplus · Accepted Answer

The Answer of Silicon Chip Company's fiscal year-end is December 31. At the end of 2013, it owed employees $22,000 in wages that will be paid on January 7, 2014.
Required:
1. Prepare an adjusting entry to record accrued salaries, a reversing entry on January 1, 2014, and an entry to record the payment of wages on January 7, 2014.
2. Prepare journal entries to record the accrued salaries on December 31 and the payment of salaries on January 7, assuming a reversing entry is not made.

Silicon Chip Company's Fiscal Year-End Is December 31