Question

Smith Company recorded an adjustment for salaries on December 31 of $1,500. On January 1 of the following year, the company reverses this adjusting entry before payment. What is the journal entry made on January 1 to reverse the adjusting entry made on December 31 of the previous year?

Answer 1

Answer:

The payment is not made hence the reversing entry is as follows

Explanation:

Salaries payable  Debit $1500

                  Salaries Expense Credit  $1500