Question
A company has a policy of paying salaries for contract labor on the 15 th of the month following the labor services received. In December
A company has a policy of paying salaries for contract labor on the 15th of the month following the labor services received. In December 2021, the company recorded $15,000 paid in salaries for labor services received in November 2021. In addition, labor services received in December 2021 were $12,000 and will be paid by the company on January 15, 2022. What adjusting entry will the company record on December 31, 2021?
a. Debit Salaries Expense and credit Salaries Payable for $27,000.
b. Debit Salaries Expense and credit Cash for $15,000.
c. Debit Salaries Expense and credit Salaries Payable for $12,000.
d. Debit Salaries Expense and credit Salaries Payable for $3,000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started