The correct adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31 is:
A)debit Salary Expense,$9,000;credit Cash,$9,000
B)debit Salary Expense,$9,000;credit Fees Earned,$9,000
C)debit Salary Expense,$9,000;credit Prepaid Salary,$9,000
D)debit Salary Expense,$9,000;credit Salaries Payable,$9,000
E)debit Salaries Payable,$9,000;credit Salary Expense $9,000

Question

Quizplus · Accepted Answer

The adjusting entry for accrued and unpaid employee salaries should recognize the expense in the current period and the liability to be paid in the future period. Debiting Salary Expense and crediting Salaries Payable reflect this treatment. Option A and B are incorrect because they do not account for the liability, and Option C is incorrect because prepaid salary implies that the employees have already been paid. Option E is also incorrect because it debits the liability and credits the expense, which is the opposite of the correct treatment.

The Correct Adjusting Entry for Accrued and Unpaid Employee Salaries