Investor journal maintains its accounts on the basis of a fiscal year ending June 30. The company works a five-day week and pays its employees up-to-date each Friday. Weekly salaries have been averaging $20,000. At the June 30 fiscal year-end, the following events occurred relating to salaries.

June 26               (Friday) Paid regular weekly salaries of $20,000.

June 30               (Tuesday) Prepared an adjusting entry to record salaries expense for the last two work days in June.

July 1                  (Wednesday) Prepared a reversing entry for accrued salaries.

July 3                  (Friday) Paid regular weekly salaries of $20,000.

a Prepare journal entries (with explanations) for the four above events relating to salaries.

b How much of the $20,000 in salaries paid on July 3 represents a July expense? Explain.

c Assume that no reversing entry had been made by Investors' Journal; prepare the journal entry for payment of salaries on July 3.

 

Answer rating: 100% (QA)

a Prepare journal entries with explanations for the four above events relating to salaries Given that the company pays its employees uptodate each Fri... View the full answer