Question
Building Inspection Services had the following unadjusted balances at December 31, 2018: Salaries Payable $0; and Salaries Expense, $2,000. The following transactions have taken place
Building Inspection Services had the following unadjusted balances at December 31, 2018: Salaries Payable $0; and Salaries Expense, $2,000. The following transactions have taken place during the end of 2018 and beginning of 2019:
2018 | |
Dec 31 | Accrued Salaries Expense at December 31, $7,000 |
Dec 31 | Closed the salaries expense account |
2019 | |
Jan 1 | Reversed the accrued salaries. (Requirement 3 only) |
Jan 4 | Paid salaries of 8,500. This payment included the Salaries Payable amount, plus $1,500 for the first few days of January. |
Requirements:
1. The T-accounts have been opened for you. Enter the Salaries Payable and Salaries Expense unadjusted balances at
December 31, 2018.
2. Journalize the entries assuming Building Inspection Services does not use reversing entries. Do not record the reversing entry on
Jan.11. Post to the accounts.
3. Journalize the entries assuming Building Inspection Services uses reversing entries. Do not forget to record the reversing entry on
Jan. 1. Post to the accounts. Compare the balances on January 4, 2019 with Requirement 2 balances on January 4, 2019.
Requirements 1 and 2. Journalize the entries assuming Building Inspection Services does not use reversing entries. Do not record the reversing entry on Jan. 1. The T-accounts have been opened for you. Enter the Salaries Payable and Salaries Expense unadjusted balances at December 31, 2018. Post the journal entries to the accounts Begin by journalizing the entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Dec. 31: Accrued Salaries Expense at December 31, $7,000. Accounts and Explanation Debit Date 2018 Dec. 31 Credit Dec. 31: Closed the Salaries Expense account. Date 2018 Dec. 31 Accounts and Explanation Debit Credit Jan. 4: Paid salaries of $8,500. This payment included the Salaries Payable amount, plus $1,500 for the first few days of January. Debit Date 2019 Jan. 4 Accounts and Explanation Credit Enter the unadjusted balances, post the entries to the accounts, calculating adjusted balances "Adj. Bal", post-closing balances "Bal.", and balances after the January 4 transaction "Bal. Enter the unadjusted balances ("Unadj. Bal.") of the accounts on the first line of each T-account. For any account with a zero unadjusted balance, enter a "O" on the normal side of the account. Post any adjusting entries (Adj.") to the accounts using the second line of the T-accounts, and then calculate the adjusted balance (Adj. Bal." of each account. For any temporary accounts only, post the closing entry ("Clos.") on the same line as the adjusted balance, and then use the following line to show the account's post-closing balance ('Bal."). If an account has a zero balance after closing, select "Bal." and enter a "O" on the normal side of that account. Finally, post the January 4 transaction (Jan. 4") and compute the ending balance (Bal." of each account after he January 4 transaction has been posted Salaries Payable Salaries Expense Requirements 1 and 3. Journalize the entries assuming Building Inspection Services uses reversing entries. Do not forget to record the reversing entry on Jan. 1. The T-accounts have been opened for you. Enter the Salaries Payable and Salaries Expense unadjusted balances at December 31, 2018. Post the journal entries to the accounts. Post to the accounts. Compare the balances on January 4, 2019 with Requirement 2 balances on January 4, 2019 Begin by journalizing the entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Dec. 31: Accrued Salaries Expense at December 31, $7,000. Debit Date 2018 Dec. 31 Accounts and Explanation Credit Dec. 31: Closed the Salaries Expense account. Date 2018 Dec. 31 Accounts and Explanation Debit Credit Jan. 1: Reversed the accrued salaries. (Requirement 3 only) Credit Date 2019 Jan. 1 Accounts and Explanation Debit Jan. 4: Paid salaries of $8,500. This payment included the Salaries Payable amount, plus $1,500 for the first few days of January. Debit Credit Date 2019 Jan. 4 Accounts and Explanation Enter the unadjusted balances, post the entries to the accounts, calculating adjusted balances "Adj. Bal", post-closing balances "Bal.and balances after the January 4 transaction "Bal." Enter the unadjusted balances ("Unadj. Bal.") of the accounts on the first line of each T-account. For any account with a zero unadjusted balance, enter a "O" on the normal side of the account. Post any adjusting entries ("Adj.") to the accounts using the second line of the T-accounts, and then calculate the adjusted balance (Adj. Bal.") of each account. For any temporary accounts only, post the closing entry ("Clos.") on the same line as the adjusted balance, and then use the following line to show the account's post-closing balance ("Bal"). f an account has a zero balance after closing, select "Bal." and enter a "0 on the normal side of that account. Finally, post the January 1 and 4 transactions using the dates as a posting reference and compute the ending balance Bal." of each account after the transactions has been posted. Salaries Payable Salaries Expense Compare the balances on January 4,2019 with Requirement 2 balances on January 4 2019 After all the journal entries are made, the balances are regardless of whether or not reversing entries are madeStep by Step Solution
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