Ocean View Services had the following unadjusted balances at December Salaries Payable, $0; Salaries Expense, $1,400. The
Question:
2016
Dec. 31 Accrued Salaries Expense at December 31, $3,000.
31 Closed the Salaries Expense account.
2017
Jan. 1 Reversed the accrued salaries. (Requirement 3 only)
4 Paid salaries of $4,400. This payment included the Salaries Payable amount, plus $1,400 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, 2016.
2. Journalize the entries assuming Ocean View 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 unadjusted balances at December 31, 2016. Journalize the entries assuming Ocean View 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.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Question Posted: