Sheldon Company had $500 for one day of accrued salaries on December 31 of the prior year. On January 4 of the current year, total salaries for the five-day week are paid. The journal entry to record the payment of salaries on January 4 includes:

a. Credit to Salaries Payoble for $500; Debit to Salaries Expense for $2,000

b. Debit to Salaries Payable for $500; Credit to Salaries Expense for $2,000

c. Debit to Salaries Payable for $500; Debit to Salaries Expense for $2,000

d. Credit to Salaries Payable for $500; Credit to Salaries Expense for $2,000

Question

Business

Eduardo Rice

9 April, 23:30

Sheldon Company had $500 for one day of accrued salaries on December 31 of the prior year. On January 4 of the current year, total salaries for the five-day week are paid. The journal entry to record the payment of salaries on January 4 includes:

a. Credit to Salaries Payoble for $500; Debit to Salaries Expense for $2,000

b. Debit to Salaries Payable for $500; Credit to Salaries Expense for $2,000

c. Debit to Salaries Payable for $500; Debit to Salaries Expense for $2,000

d. Credit to Salaries Payable for $500; Credit to Salaries Expense for $2,000

+5

Answers (1)

Know the Answer?

Gracelyn Knight · Answer 1

The correct answer is option (C).

Explanation:

According to the scenario, given data are as follows:

Salary (daily) = $500

So salary for 4 days of January. 1 to Jan. 4 = 4 * $500 = $2,000

As salary of 1 day is payable in December and salary of 4 days are payable in January, Hence the Journal entries can be recorded as follows:

Journal Entries

Date Particulars Debit Credit

Jan. 4 Salary expense (Dr) $2,000

Salary payable (Dr) $500

Cash $2,500