Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If a company's employees have earned salaries that amount to $34,000 and they pay $4,000 cash, with the remainder to be paid in the next

If a company's employees have earned salaries that amount to $34,000 and they pay $4,000 cash, with the remainder to be paid in the next period, what accounts do I put each amount into while doing transaction analysis?

Right now I have -4000 on cash (asset), +34,000 on retained earnings (equity) [I did this because I am under the impression that earned salaries have made the revenue account increase, but there is no individual revenue account on my doc], and I have $30,000 on wages payable(L).

I am just very confused of whether or not this balances.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Measuring Business Interruption Losses And Other Commercial Damages An Economic Approach

Authors: Patrick A. Gaughan

3rd Edition

1119647916, 9781119647911

More Books

Students also viewed these Accounting questions

Question

answer B Question 4 of 4

Answered: 1 week ago