Question
Your company has a 5-day workweek (Monday-Friday) with a weekly payroll of $20,000. This year, December ends on a Friday. If your company uses the
Your company has a 5-day workweek (Monday-Friday) with a weekly payroll of $20,000. This year, December ends on a Friday. If your company uses the accrual basis, which of the following adjusting entries will you record?
1)debit Salary Payable for $4,000; credit Salary Expense for $4,000
2)debit Salary Payable for $4,000; credit Cash for $4,000
3)debit Salary Expense for $4,000; credit Salary Payable for $4,000
4)an adjusting entry is not necessary; the normal payroll entry made of Friday will be made for a full week.
5)debit Salary Expense for $4,000; credit Cash for $4,000
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