Marion Corporation pays its employees on the 15th of each month. Accrued, but unpaid, salaries on December 31, year 1, totaled $300,000. Salaries earned by Marion’s employees from January 1 through January 15, year 2, totaled $325,000.
a. Prepare the necessary adjusting entry for salaries expense on December 31, year 1.
b. Record the company’s payment of salaries on January 15, year 2.