Mountain View Services had the following unadjusted balances at December 31, 2024: Salaries Payable, $0; and Salaries Expense, $1,900. The following transactions have taken place at the end of 2024 and beginning of 2025:

 

Requirements 

1. Open T-accounts for Salaries Payable and Salaries Expense using their unadjusted balances at December 31, 2024. 

2. Journalize the entries assuming Mountain 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, 2024. Journalize the entries assuming Mountain View Services uses reversing entries. Don’t forget to record the reversing entry on Jan. 1. Post to the accounts. Compare the balances on January 4, 2025 with Requirement 2 balances on January 4, 2025.

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2024 Dec. 31 31 2025 Jan. 1 4 Accrued Salaries Expense at December 31, $8,000. Closed the Salaries Expense account. Reversed the accrued salaries. (Requirement 3 only) Paid salaries of $8,500. This payment included the Salaries Payable amount, plus $500 for the first few days of January.