A company pays each of its two office employees each Friday at the rate of $100 per day for a five-day week that begins on Monday.If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday,the month-end adjusting entry to record the salaries earned but unpaid is:

A) Debit Unpaid Salaries $600 and credit Salaries Payable $600.
B) Debit Salaries Expense $400 and credit Salaries Payable $400.
C) Debit Salaries Expense $600 and credit Salaries Payable $600.
D) Debit Salaries Payable $400 and credit Salaries Expense $400.
E) Debit Salaries Expense $400 and credit Cash $400.

Question

KAMAL IRFAN · Accepted Answer

Final Answer : B, Explanation :  The correct entry to record the salaries earned but unpaid for two days (Monday and Tuesday) for two employees at $100 per day each is to debit Salaries Expense for $400 (2 employees * 2 days * $100/day) and credit Salaries Payable for $400. This reflects the expense incurred and the liability owed by the company for those two days.

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