Chapter 4: 7TI-3 (page 208)

Winters Landscape Services accrued $4,000 of Salaries Expense at December 31. Winters paid the next payroll at January 10 of
$6,000. This payment included the accrued amount at December 31, plus $2,000 for the first few days of January.
25A. Journalize the cash payment

Short Answer

Expert verified

Journal entry is as follows:

Date	Accounts and Explanation	Debit	Credit
Jan. 10	Salaries Expense	$6,000
	Cash		$6,000
	To record payment of salaries

Step by step solution

Explanation on Salaries Expense

Salaries expense indicates the total cost incurred on the labor part of the total business process.

Explanation on Reversal Entry

Cash payment of salaries will be recorded by debiting salary expense and crediting cash by $6,000, respectively.

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Winters Landscape Services accrued \(4,000 of Salaries Expense at December 31. Winters paid the next payroll at January 10 of
\)6,000. This payment included the accrued amount at December 31, plus $2,000 for the first few days of January.
25A. Journalize the cash payment

Short Answer

Step by step solution

Explanation on Salaries Expense

Explanation on Reversal Entry

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Most popular questions from this chapter

Recommended explanations on Business Studies Textbooks

Influences On Business

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Study anywhere. Anytime. Across all devices.

Winters Landscape Services accrued \(4,000 of Salaries Expense at December 31. Winters paid the next payroll at January 10 of\)6,000. This payment included the accrued amount at December 31, plus $2,000 for the first few days of January.25A. Journalize the cash payment

Short Answer

Step by step solution

Explanation on Salaries Expense

Explanation on Reversal Entry

One App. One Place for Learning.

Most popular questions from this chapter

Recommended explanations on Business Studies Textbooks

Influences On Business

Strategic Direction

Operational Management

Business Case Studies

Intermediate Accounting

Corporate Finance

Study anywhere. Anytime. Across all devices.

Winters Landscape Services accrued \(4,000 of Salaries Expense at December 31. Winters paid the next payroll at January 10 of
\)6,000. This payment included the accrued amount at December 31, plus $2,000 for the first few days of January.
25A. Journalize the cash payment