Salaries are $5,000 per week for five working days and are paid weekly at the end of the day on Fridays. The end of the month falls on a Thursday. The accountant for Sunset, Inc. made the appropriate accrual adjustment and posted it to the ledger. The 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 $4,000
B) debit balance of $1,000
C) debit balance of $4,000
D) credit balance of $1,000

Question

Quizplus · Accepted Answer

Since salaries are $5,000 per week for five working days, each day accounts for $1,000 ($5,000/5 days). If the month ends on a Thursday, four days of salaries have been accrued but not yet paid, resulting in a credit balance of $4,000 in Salaries Payable.

Salaries Are $5,000 Per Week for Five Working Days and Are