Fundamental Financial Accounting Concepts

Quizz question

John receives his salary from the company XYZ . He worked for the company during the period 15 - 31 December 2018 at a value of $500,000, but the salary will not be paid until January 2, 2019. The settlement statement at XYZ at the end of 2018 is:

a. Debit salary $ 500,000, credit unpaid wages $ 500,000.

b. Debit unpaid wages $ 500,000, credit bank $500,000.

c. No need to move any post.

d. Debit salary $ 500,000, credit bank $ 500,000.