During the year,Cheng Company paid salaries of $24,000.In addition,$8,000 in salaries has accrued by the end of the year but has not been paid.The year-end adjusting entry would include which one of the following?
A)Debit to Salaries Expense for $32,000.
B)Credit to Salaries Expense of $8,000.
C)Debit to Salaries Payable for $24,000.
D)Credit to Salaries Payable for $8,000.

Question

Quizplus · Accepted Answer

The correct adjusting entry to record the accrued salaries would be to debit Salaries Expense for $8,000 (increasing the expense) and credit Salaries Payable for $8,000 (increasing the liability). This reflects the additional expense incurred but not yet paid by the end of the year.

During the Year,Cheng Company Paid Salaries of $24,000