Adjustment for Accrued Salaries Laguna Realty Co. pays weekly salaries of $8,000

Question

Adjustment for Accrued Salaries

Laguna Realty Co. pays weekly salaries of $8,000 on Friday for a five-day week ending on that day. What is the adjustment at the end of the accounting period, assuming that the period ends (a) on Monday or (b) on Wednesday? Indicate whether each account is increased or decreased and the amount of the increase or decrease.

a.

Salary expense

$

Salary payable

$

b.

Salary expense

$

Salary payable

$

a.

Salary expense

$

Salary payable

$

b.

Salary expense

$

Salary payable

$

Explanation / Answer

Solution:

a.

Salary expense

$1600

Salary payable

$1600

b.

Salary expense

$4800

Salary payable

$4800

Working: 8000 / 5 = 1600 salary per day

Monday: 1 days: 1600 * 1day = 1600

Wedneday: 3 days: 1600 * 3 days = 4800

a.

Salary expense

$1600

Salary payable

$1600

b.

Salary expense

$4800

Salary payable

$4800

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.