Question

By the end of the accounting period, employees have earned salaries of $500, but they will not be paid until the following pay period. Which of the following is the proper adjusting entry? A) Credit Salaries expense for $500. B) Debit Salaries payable for $500. C) Credit Unearned revenues for $500. D) Debit Salaries expense for $500.

Answer 1

Answer:

D) Debit Salaries expense for $500.

Explanation:

Preparation of the proper adjusting entry

Since we were told that employees have earned salaries of the amount of $500 in which they wont be paid until the following pay period which means that the adjusting entry will be:

Debit Salaries expense for $500