Question

A company recorded 2 days of accrued salaries of $1,450 for its employees on January 31. On February 9, it paid its employees $7,100 for these accrued salaries and for other salaries earned through February 9. Assuming the company does not prepare reversing entries, the January 31 and February 9 journal entries are: Multiple Choice C) 1/ 1.450 salaries Expense Salaries Payable 1.450 12/9 salaries Expense Salarios Payable Cash 5,650 1,450 7,100 1,450 1/31 Salaries Expense Salaries Payable 1.450 2/9 Salaries Payable Salaries Expense 5,650 1,450 7,100 < Prev 8 of 19 !!! Next >

Answer 1

First multiple is the correct answer.

We have recorded the 2 days salary of Jan month as an accured expenses.

Entry is -

Salaries Expense/ Ac Dr. 1450

To Salaries Payable A/c. 1450

In the month of Feb, we paid salary upto 9 Feb and also the balance amount of Jan month.

Our Liability for the month of January is 1450, so salary payable a/c is debited by 1450/-

And the balance amount belongs to February month.

So the Entry is -

Salaries Expense A/c Dr. 5650

Salaries Payable A/c Dr. 1450

To Cash. 7100