Buster Industries pays weekly salaries of $30,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Tuesday is a. debit Salaries Payable, $12,000; credit Cash, $12,000 b. debit Salary Expense, $12,000; credit Dividends, $12,000 C. debit Dividends, $12,000; credit Cash, $12,000 d. debit Salary Expense, $12,000; credit Salaries Payable, $12,000

Question

Business

Gabriella

7 March, 04:06

Buster Industries pays weekly salaries of $30,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Tuesday is a. debit Salaries Payable, $12,000; credit Cash, $12,000 b. debit Salary Expense, $12,000; credit Dividends, $12,000 C. debit Dividends, $12,000; credit Cash, $12,000 d. debit Salary Expense, $12,000; credit Salaries Payable, $12,000

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Answers (1)

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Carrot · Answer 1

The correct answer is D

Explanation:

The journal entry to be recorded for the salary is as:

Salary expense A/c ... Dr $12,000

Salary Payable A/c ... Cr $12,000

Being the salary which is paid weekly, become accrued

Working Note:

Single day amount = Weekly payment / Number of days

= $30,000 / 5

= $6,000 per day

So, computing for 2 days (Monday and Tuesday) salary as:

Amount = Per day salary * Number of days

= $6,000 * 2

= $12,000