Question

Home Inspection Services had the following unadjusted balances at December 31, 2014: Salaries Payable, $ 0; Salaries Expense, $ 1,000. The following transactions have taken place during the end of 2014 and beginning of 2015:
2014
Dec. 31 Accrued Salaries Expense at December 31, $ 3,000.
31 Closed the Salaries Expense account.
2015
Jan. 1 Reversed the accrued salaries. (Requirement 3 only)
4 Paid salaries of $ 4,500. This payment included the Salaries Payable amount, plus $ 1,500 for the first few days of January.

Requirements
1. Open T-accounts for Salaries Payable and Salaries Expense using their ­unadjusted balances at December 31, 2014.
2. Journalize the entries assuming Home Inspection Services does not use reversing entries. Do not record the reversing entry on Jan. 1. Post to the accounts.
3. Open new T-accounts for Salaries Payable and Salaries Expense using their un-adjusted balances at December 31, 2014. Journalize the entries assuming Home Inspection Services uses reversing entries. Don’t forget to record the reversing entry on Jan. 1. Post to the accounts. Compare the balances with Requirement 2 balances.



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  • CreatedJanuary 16, 2015
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