A company's five-day weekly payroll of $890 is paid on Fridays.Assume that the last day of the month falls on Tuesday.Which of the following is the required adjusting entry for the month end?
A)Debit Salaries Payable $534 and credit Salaries Expense $534.
B)Debit Salaries Expense $534 and credit Salaries Payable $534.
C)Debit Unpaid Salaries $356 and credit Salaries Payable $356.
D)Debit Salaries Expense $356 and credit Salaries Payable $356.

Question

Quizplus · Accepted Answer

The correct adjusting entry is to recognize the salaries expense incurred but not yet paid for the three days of the week that fall within the month. The weekly payroll is $890 for five days, so each day's payroll is $178 ($890/5). For three days (Wednesday, Thursday, and Tuesday), the total is $534 ($178 x 3). Therefore, you debit Salaries Expense and credit Salaries Payable for $534, not $356 as stated in the question.

A Company's Five-Day Weekly Payroll of $890 Is Paid on Fridays.Assume