The salaries are $6,000 per week of 5 working days and are paid weekly at the end of Fridays.The end of the month falls on a Thursday.The accountant of Paramount Inc.made the appropriate accrual adjustment and posted it to the ledger.The final adjusted balance of Salaries Payable,as shown on the adjusted trial balance,will be a ________. (Assume that there was no beginning balance in the Salaries Payable account.)
A)credit balance of $4,800
B)debit balance of $1,200
C)debit balance of $4,800
D)credit balance of $1,200

Question

Quizplus · Accepted Answer

The salaries are $6,000 for 5 days, so the daily salary is $1,200. Since the end of the month is on a Thursday, 4 days of salaries need to be accrued, which is $4,800. This will be a credit balance in Salaries Payable.

The Salaries Are $6,000 Per Week of 5 Working Days