Flagg records adjusting entries at its December 31 year-end. At December 31, employees had earned $12,400 of unpaid and unrecorded salaries. The next payday is January 3, at which time $31,000 will be paid. Prepare the journal entry on January 3 to record payment assuming the adjusting and reversing entries were made on December 31 and January 1. Multiple Choice Debit Salaries expense $18,600, debit Salaries payable $12,400; credit Cash $31,000. Debit Salaries expense $18,600; credit Cash $18,600. Debit Salaries expense $12,400; debit Salaries payable $18,600; credit Cash $31,000. Debit Salaries payable $31,000; credit Cash $31,000. Debit Salaries expense $31,000; credit Cash $31,000.

Question

Javon Strong

Business

4 November, 22:10

Flagg records adjusting entries at its December 31 year-end. At December 31, employees had earned $12,400 of unpaid and unrecorded salaries. The next payday is January 3, at which time $31,000 will be paid. Prepare the journal entry on January 3 to record payment assuming the adjusting and reversing entries were made on December 31 and January 1. Multiple Choice Debit Salaries expense $18,600, debit Salaries payable $12,400; credit Cash $31,000. Debit Salaries expense $18,600; credit Cash $18,600. Debit Salaries expense $12,400; debit Salaries payable $18,600; credit Cash $31,000. Debit Salaries payable $31,000; credit Cash $31,000. Debit Salaries expense $31,000; credit Cash $31,000.

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Answers (1)

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Seth Krueger · Answer 1

Debit Salaries payable $31,000; credit Cash $31,000

Explanation:

As we know that

The journal entry to record the payment is

Salary payable $31,000

To Cash $31,000

(being the cash is paid)

For accrual of salary we debited the salaries expense and credited the salary payable as it increased the both expenses and liabilities account

But since we have to pass the journal entry on Jan 3 so we pass the journal entry which is shown above