On December 31, 2018, employees who earn $500 per day have worked eight days and will be paid on January 6, 2019. The adjusting entry on December 31, 2018, includes a debit to Salaries Expense for $4,000. a. Trueb. False

Question

Sylvia Walker

Business

13 November, 15:36

On December 31, 2018, employees who earn $500 per day have worked eight days and will be paid on January 6, 2019. The adjusting entry on December 31, 2018, includes a debit to Salaries Expense for $4,000. a. Trueb. False

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Sonia · Answer 1

True

Explanation:

Salaries for these eight days represent an accrued expense and a related liability to the firm.

Expense Salaries and Wages Expense is increased = $4,000

Liability account Salaries and Wages Payable is increased = $4,000.

The adjusting entries are as follows:

Debits increase expenses and at the same time Credits increase liabilities:

Salaries Expense A/c Dr. $4,000

To Salaries Payable $4,000