brief exercise 4.7 (static) accruing unpaid salaries (lo4 - 5)\nmarion corporation pays its employees on the…

brief exercise 4.7 (static) accruing unpaid salaries (lo4 - 5)\nmarion corporation pays its employees on the 15th of each month. accrued, but unpaid, salaries on december 31, year 1, totaled $300,000. salaries earned by marions employees from january 1 through january 15, year 2, totaled $325,000.\na. prepare the necessary adjusting entry for salaries expense on december 31, year 1.\nb. record the companys payment of salaries on january 15, year 2.\ncomplete this question by entering your answers in the tabs below.\nrequired a required b\nrecord the companys payment of salaries on january 15, year 2.\nnote: if no entry is required for a transaction/event, select \no journal entry required\ in the first account field.\nview transaction list view journal entry worksheet\ndate general journal debit credit\na january 15 salaries payable 300,000\nsalaries expense 25,000\ncash 325,000

brief exercise 4.7 (static) accruing unpaid salaries (lo4 - 5)\nmarion corporation pays its employees on the 15th of each month. accrued, but unpaid, salaries on december 31, year 1, totaled $300,000. salaries earned by marions employees from january 1 through january 15, year 2, totaled $325,000.\na. prepare the necessary adjusting entry for salaries expense on december 31, year 1.\nb. record the companys payment of salaries on january 15, year 2.\ncomplete this question by entering your answers in the tabs below.\nrequired a required b\nrecord the companys payment of salaries on january 15, year 2.\nnote: if no entry is required for a transaction/event, select \no journal entry required\ in the first account field.\nview transaction list view journal entry worksheet\ndate general journal debit credit\na january 15 salaries payable 300,000\nsalaries expense 25,000\ncash 325,000

Answer

Explanation:

Step1: Adjusting entry for Dec 31, year 1

At the end of year 1, the company has incurred but not paid salaries of $300,000. We need to recognize this expense and the corresponding liability. The journal entry will debit Salaries Expense to record the expense and credit Salaries Payable to record the liability.

Date General Journal Debit Credit
December 31, year 1 Salaries Expense 300,000
Salaries Payable 300,000

Step2: Payment entry on January 15, year 2

The company pays salaries on January 15, year 2. The total amount paid is $325,000. This includes the $300,000 of accrued salaries from year 1 and $25,000 of salaries earned in January (year 2). We will debit Salaries Payable for the amount of the prior - period liability ($300,000), debit Salaries Expense for the current - period expense ($25,000), and credit Cash for the total amount paid ($325,000).

Date General Journal Debit Credit
January 15, year 2 Salaries Payable 300,000
Salaries Expense 25,000
Cash 325,000

Answer:

a.

Date General Journal Debit Credit
December 31, year 1 Salaries Expense 300,000
Salaries Payable 300,000
b.
Date General Journal Debit Credit
---- ---- ---- ----
January 15, year 2 Salaries Payable 300,000
Salaries Expense 25,000
Cash 325,000