Assume that the weekly payroll of Blank Canvas Art Supply is $330. December 31, end of the year, falls on Tuesday, and Blank Canvas will pay its employee on Friday for the full week. What adjusting entry will Blank Canvas make on Tuesday, December 31? (Use five days as a full workweek.)

The adjusting entry is shown below:

On December 31

Salaries expense A/c $132

To Salaries payable A/c $132

(Being salary is adjusted)

The salaries expense is computed by

= Total five days * number of days : total number of days

= $330 * (2 : 5)

= $132

The two days includes Monday and Tuesday so we considered only 2 days out of 5 days