The adjusting entry for accrued salaries*a. debit salaries expense and credit cashb. debit salaries payable and credit cashc. debit salaries expense and credit salaries payabled. debit salaries payable and credit salaries expense
Question
The adjusting entry for accrued salaries*a. debit salaries expense and credit cashb. debit salaries payable and credit cashc. debit salaries expense and credit salaries payabled. debit salaries payable and credit salaries expense
Solution
The correct answer is c. debit salaries expense and credit salaries payable.
Here's why:
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Accrued salaries refer to the amount of salary that a company owes to its employees for the work they have done but has not yet paid. This is considered as a liability for the company.
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When you make an adjusting entry for accrued salaries, you are increasing your expenses and your liabilities.
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In accounting, to increase an expense (salaries expense in this case), you debit it. So, you debit salaries expense.
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Similarly, to increase a liability (salaries payable in this case), you credit it. So, you credit salaries payable.
Therefore, the adjusting entry for accrued salaries is: debit salaries expense and credit salaries payable.
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