62a)A company pays each of its two office employees each Friday at the rate of $

Question

62a)A company pays each of its two office employees each Friday at the rate of $140 per day for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is:
62b)On September 12, Ryan Company sold merchandise in the amount of $8,800 to Johnson Company, with credit terms of 3/10, n/30. The cost of the items sold is $5,500. Ryan uses the periodic inventory system and the net method of accounting for sales. The journal entry or entries that Ryan will make on September 12 is (are):
62c)If the liabilities of a business increased $107,000 during a period of time and the owner's equity in the business decreased $46,000 during the same period, the assets of the business must have increased or decreased by how much?
62d)If the liabilities of a business increased $107,000 during a period of time and the owner's equity in the business decreased $46,000 during the same period, the assets of the business must have understated or overstated by how much?

Explanation / Answer

Note: All given questions are separate & independent. So as per rule I am answering first question.

Question (62.a);

Adjusting entry will be made as follow;

Date

Accounts Titles & Explanation

Debit

Credit

At the end of month

Salaries Expense

$560

    Salaries Payable

$560

(Adjusting entry to record the earned but unpaid salaries of employees)

Working Note;

Salaries earned but unpaid is calculated as follow;

Number of employees = 2

Number of days = 2

Per day salary = $140

So, Salaries earned but unpaid ($140 * 2 * 2) = $560

Date

Accounts Titles & Explanation

Debit

Credit

At the end of month

Salaries Expense

$560

    Salaries Payable

$560

(Adjusting entry to record the earned but unpaid salaries of employees)

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