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. Patricia 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 paid weekly at the end of Fridays, and the end of the month falls on a Thursday. This means that there are 4 days of unpaid salaries at the end of the month. The amount of unpaid salaries is $6,000 per week / 5 working days * 4 days = $4,800. The accrual adjustment will increase the Salaries Payable account by $4,800, resulting in a credit balance of $4,800.

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