A business 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 a Thursday is
A) debit Salaries and Wages Payable, $24,000; credit Cash, $24,000.
B) debit Salaries and Wages Expense, $24,000; credit Cash, $24,000.
C) debit Salaries and Wages Expense, $24,000; credit Salaries and Wages Payable, $24,000.
D) debit Salaries and Wages Expense, $6,000; credit Salaries and Wages Payable, $6,000.

Question

Quizplus · Accepted Answer

The adjusting entry necessary at the end of the fiscal period ending on a Thursday is to record the accrual of salaries and wages that have been earned by employees but have not yet been paid. Therefore, the entry should be a debit to Salaries and Wages Expense for the amount earned through Thursday ($24,000) and a credit to Salaries and Wages Payable for the same amount ($24,000). This will ensure that the expenses are properly matched with the period in which they were incurred.

A Business Pays Weekly Salaries of $30,000 on Friday for a Five-Day