The adjusting Entry necessary at the end of the fiscal period ending on Thursday is:?

Question

A business pays weekly salaries of $20,000 on Friday for a five-day week ending on that day.  The adjusting Entry necessary at the end of the fiscal period ending on Thursday is:

a. debit salaries Payable,  $16,000; credit Cash, $16,000
b. debit salaries Expense, $16,000; credit Cash, $16,000
c. debit salaries Expense, $16,000; credit Salaries Payable,    $16,000
d. debit salaries Expense, $16,000; credit Accounts Payable,  $16,000

Sandy · Accepted Answer

On Thursday, you recognise a liability of 4 days' salaries,
c. debit salaries Expense, $16,000; credit Salaries Payable, $16,000

On Friday, when you pay the whole week's salary,
Dr  Salaries expense $4,000
Dr  Salaries payable $16,000
Cr  Cash $20,000

Anna · Answer

c.

On Thursday, you debit salaries payable  $16000, Salaries expense 16,000,  

In addition, on Friday, you debit salaries expense for $4000 , credit salaries payable for $4000.  

This should clear out the accounts set up at the beginning of the week.

Anonymous · Answer

answer :  C

The adjusting Entry necessary at the end of the fiscal period ending on Thursday is:?

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