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Chapter 3: 10SE_2 (page 159)

Question :Birch Park Senior Center has a weekly payroll of \(12,500. December 31 falls on Wednesday, and Birch Park Senior Center will pay its employees the following Monday (January 5) for the previous full week. Assume Birch Park Senior Center has a five-day workweek and has an unadjusted balance in Salaries Expense of \)620,000. Requirements 1. Record the adjusting entry for accrued salaries on December 31. 2. Post the adjusting entry to the accounts involved, and show their balances after adjustments. 3. Record the journal entry for payment of salaries made on January 5

Short Answer

Expert verified

T accounts are as follows:

Salaries Payable

7,500

Dec.31

7,500

Bal.

Salaries Expense

620,000

Dec.31

7,500

Bal.

627,500

Step by step solution

01

Step-by-Step-SolutionStep 1: Explanation on Salaries Payable

Salaries payable refers to the outstanding wages of the employees, that are unpaid.

02

Explanation on T account

The ending balance of salaries payable account is $7,500, and salaries expense equals $627,500.

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