Question

A company shows a balance in Salary Payable of $40k at the end of the month. The next payroll amounting to $45k is to be paid in the following month. What will be then entry to record the payment salary?

Answer 1

Answer: The journal entry is as follows:

Explanation:

Given that,

Balance in salary payable = $40000

Next payroll in the following month = $45000

So, the journal entry to record the payment salary is as follows:

Salaries and Wages Expense A/C  Debit   5000

Salaries and Wages Payable A/C  Debit    40000

To Cash A/C                                                             45000

(entry to record the payment salary)