Milford Corporation pays its employees on the fifteenth of each month. Accrued, but unpaid, salaries on December

Question:

Milford Corporation pays its employees on the fifteenth of each month. Accrued, but unpaid, salaries on December 31, 2011, totaled $175,000. Salaries earned by Milford’s employees from

January 1 through January 15, 2012, totaled $180,000.

a. Prepare the necessary adjusting entry for salaries expense on December 31, 2011.

b. Record the company’s payment of salaries on January 15, 2012.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...