Question
Flagg records adjusting entries at its December 31 year-end. At December 31, employees had earned $9,600 of unpaid and unrecorded salaries. The next payday is
Flagg records adjusting entries at its December 31 year-end. At December 31, employees had earned $9,600 of unpaid and unrecorded salaries. The next payday is January 3, at which time $24,000 will be paid. Prepare the journal entry on January 3 to record payment assuming the adjusting and reversing entries were made on December 31 and January 1.
a. Debit Salaries expense $24,000; credit Cash $24,000.
b. Debit Salaries expense $9,600; debit Salaries payable $14,400; credit Cash $24,000.
c. Debit Salaries expense $14,400, debit Salaries payable $9,600; credit Cash $24,000.
d. Debit Salaries payable $24,000; credit Cash $24,000.
e. Debit Salaries expense $14,400; credit Cash $14,400.
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