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Immediately after recording the first payroll in January of 20X2, the accountants discovered that $500,000 of accrued salaries from 20X1 were not recognized in 20X1.
Immediately after recording the first payroll in January of 20X2, the accountants discovered that $500,000 of accrued salaries from 20X1 were not recognized in 20X1. Instead, they were recognized when they were paid in 20x2. The January, 20x2, journal entry necessary to correct this error would include: Credit salaries payable $500,000 Debit Retained earnings $500,000 No entry; the error has self-corrected Debit salaries expense $500,000
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