Question

A business pays bi-weekly salaries of $20,000 every other Friday for a ten-day period ending on that day. The adjusting entry necessary at the end of the fiscal period ending on the second Wednesday of the pay period includes a:

a. debit to salary expense of $8,000
b. debit to salaries payable of $8,000
c. credit to salary expense of $16,000
d. credit to salaries payable of $16,00

Answer 1

Answer:

d. credit to salaries payable of $16,000

Explanation:

At the fiscal period ending, the company must recognize the expenses suffered in that period independently of its payment.

So, the salaries expenses in that period include the 10,000 for the first week and the proportional 6,000 for the second week totalizing 16,000.

The accountable register that has to be done is: Debit to salary expense for 16,000 and credit to salary payable for 16,000.