The following transactions occurred in ABC Company:

1. The accrued salaries at December 31,2020 amounted to $490, The accountant made an adjusting entry by debiting salaries expense $940 and crediting Accrues Salaried $940.

2. The accountant recorded $900 Depreciation Expense on store equipment as follows:

Dr.Depreciation Expense 900

Cr.Cash 900

Required:

Show the effect of each entry on the financial statements separately. (Correcting entries are not required). (6 marks)

Answer rating: 100% (QA)

The detailed answer for the above question is provided below 1 Accrued salaries will increase both the expense account and the liability account 2 Dep... View the full answer