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7 June, 17:57

The employees of Neat Clothes work Monday through Friday. Every other Friday the company issues payroll checks totaling $22,000. The current pay period ends on Friday, July 3. Neat Clothes is now preparing quarterly financial statements for the three months ended June 30. What is the adjusting entry to record accrued salaries at the end of June?

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  1. 7 June, 19:31
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    Salaries expense A/c Dr $15,400

    To Salaries payable A/c $15,400

    (Being the accrued salaries is recorded)

    Explanation:

    The adjusting entry is shown below

    Salaries expense A/c Dr $15,400

    To Salaries payable A/c $15,400

    (Being the accrued salaries is recorded)

    The computation is shown below:

    = $22,000 * 7 days : 10 days

    = $15,400

    The 10 days is comprised of 2 weeks that reflects 5 days in one week as it is given every other Friday

    Out of which, 3 days are already taken from July 1 to July 3
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