Asked by Andrea Diaz-Rodriguez on Jul 08, 2024
Verified
Bloom's Company pays biweekly salaries of $40,000 every other Friday for a ten-day period ending on that day. The last payday of December is Friday, December 27. Assuming the next pay period begins on Monday, December 30, journalize the adjusting entry necessary at the end of the fiscal period (December 31).
Biweekly Salaries
Payroll disbursements made to employees every two weeks, totaling twenty-six payments annually.
Fiscal Period
Any designated period of time for accounting purposes, typically a year, used by governments and businesses for financial reporting and budgeting.
Adjusting Entry
A journal entry made at the end of an accounting period to update the accounts and ensure they reflect the true financial position of the business.
- Understand the aim and sequence involved in adjusting entries within the accounting operations.
- Detect and assemble journal entries for several types of adjusting entries, namely prepayments, accruals, and depreciation.
- Determine and log entries for payroll and associated adjustments in the ledger.
Verified Answer
$4,000 per day × 2 days = $8,000
Learning Objectives
- Understand the aim and sequence involved in adjusting entries within the accounting operations.
- Detect and assemble journal entries for several types of adjusting entries, namely prepayments, accruals, and depreciation.
- Determine and log entries for payroll and associated adjustments in the ledger.
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