An Adjusting Entry Was Made On Year-End December 31 To Accrue Salary Expense Of $1,200. Assuming The Company Does Not Prepare Reversing Entries, Which Of The Following Entries Would Be Prepared To Record The $3,000 Payment Of Salaries In January Of The Following Year?
The correct answer of this multiple choice question (mcq) is E, as proved below: On 31 st December, the company is liable to pay salary of $1,200 to its employees as these are earned by the employees by rendering / performing the services to the company / corporation for the current accounting period according to Accrual Basis of Accounting . So, the following adjusting entry is recorded as shown below: Salaries Expense (SE) a/c $1,200 Salaries Payable a/c $1,200 ...