Silicon Chip Company’s fiscal year-end is December 31. At the end of 2016, it ow
ID: 2494316 • Letter: S
Question
Silicon Chip Company’s fiscal year-end is December 31. At the end of 2016, it owed employees $27,000 in salaries and wages that will be paid on January 7, 2017. Required: 1. Prepare an adjusting entry to record accrued salaries and wages, a reversing entry on January 1, 2017, and an entry to record the payment of salaries and wages on January 7, 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2.Prepare journal entries to record the accrued salaries and wages on December 31 and the payment of salaries and wages on January 7, assuming a reversing entry is not recorded. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Explanation / Answer
Required 1. On December,2016: (Accrued Enty)
Salaries and wages Dr. $27000
To Accrued Salaries and Wages $27000
On 1.January,2017:(Reversing entry)
Accrued Salaries and Wages Dr. $27000
To Salaries and wages $27000
On 7,january.2017 :(Payment of salary and wages)
Salaries and wages Dr. $27000
To Cash $27000
Required 2. On December,2016: (Accrued Enty)
Salaries and wages Dr. $27000
To Accrued Salaries and Wages $27000
On 7,january.2017 :(Payment of salary and wages)
Accrued Salaries and Wages Dr. $27000
To Cash $27000
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