Northlake Nordic Centre Inc.’s staff earned $4,700 of wages for 28–31 December, to be paid with the payroll on 7 January. Record the adjusting entry at 31 December.
Northlake Nordic Centre Inc.’s staff earned $4,700 of wages for 28–31 December, to be paid with the payroll on 7 January. Record the adjusting entry at 31 December.
Answer
Dr Salaries Expense 4700; Cr Salaries Payable 4700
Accounts - Salaries Expense - Salaries Payable - Cash - Accounts Payable The work was done in December, so the expense is December’s: **Salaries Expense** (debit) and **Salaries Payable** (liability up — credit). The trap is **Cash** — nothing is paid until 7 January, and an adjustment never credits Cash. Accounts Payable is for suppliers; wages owed take their own payable.
Hermanson Vol 1 ch 3 (accrued assets and liabilities); Hermanson Vol 1 ch 9 (notes and interest, adapted shape); Dauderis & Annand §3.2 (concept map D9–D11)