Ask Question
25 July, 05:59

Fighting Irish Incorporated pays its employees $3,640 every two weeks ($260/day). The current two-week pay period ends on December 28, 2018, and employees are paid $3,640. The next two-week pay period ends on January 11, 2019, and employees are paid $3,640.1. Record the adjusting entry on Dec. 31, 20182. Record the payment of salaries on Jan. 11, 20193. Calculate the 2018 year-end adjusted balance of Salaries Payable (assuming the balance of Salaries Payable before adjustment in 2018 is $0)

+2
Answers (1)
  1. 25 July, 06:12
    0
    1. Salaries expense A/c $780

    To Salaries payable A/c $780

    (Being adjusting salary is recorded)

    2. Salaries expense A/c Dr $2,860 ($260 * 11 days)

    Salary payable A/c Dr $780

    To Cash A/c $3,640

    (Being the payment is recorded)

    3. $780

    Explanation:

    1. The adjusting entry is presented below:

    Salaries expense A/c $780

    To Salaries payable A/c $780

    (Being adjusting salary is recorded)

    The salaries expense is calculated below:

    = Salary per day * number of days

    = $260 * 3 days

    = $780

    The number of days is calculated from Dec 28 to Dec 31

    2. The entry would be

    Salaries expense A/c Dr $2,860 ($260 * 11 days)

    Salary payable A/c Dr $780

    To Cash A/c $3,640

    (Being the payment is recorded)

    3. The year-end adjusting balance would be

    = Salaries Payable before adjustment + adjustment balance

    = $0 + $780

    = $780
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Fighting Irish Incorporated pays its employees $3,640 every two weeks ($260/day). The current two-week pay period ends on December 28, ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers