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Fighting Irish Incorporated pays its employees $3,640 every two weeks ($260/day). The current two-week pay period ends on December 28, 2018, and employees are paid $3,640. The next two-week pay period ends on January 11, 2019, and employees are paid $3,640.1. Record the adjusting entry on Dec. 31, 20182. Record the payment of salaries on Jan. 11, 20193. Calculate the 2018 year-end adjusted balance of Salaries Payable (assuming the balance of Salaries Payable before adjustment in 2018 is $0)
Fighting Irish Incorporated pays its employees $3,640 every two weeks ($260/day). The current two-week pay period ends on December 28, 2018, and employees are paid $3,640. The next two-week pay period ends on January 11, 2019, and employees are paid $3,640.1. Record the adjusting entry on Dec. 31, 20182. Record the payment of salaries on Jan. 11, 20193. Calculate the 2018 year-end adjusted balance of Salaries Payable (assuming the balance of Salaries Payable before adjustment in 2018 is $0)
Answer:1. Salaries expense A/c $780To Salaries payable A/c $780(Being adjusting salary is recorded)2. Salaries expense A/c Dr $2,860 ($260 × 11 days)Salary payable A/c Dr $780To Cash A/c $3,640(Being the payment is recorded)3. $780Explanation:1. The adjusting entry is presented below:Salaries expense A/c $780To Salaries payable A/c $780(Being adjusting salary is recorded)The salaries expense is calculated below:= Salary per day × number of days= $260 × 3 days= $780The number of days is calculated from Dec 28 to Dec 312. The entry would beSalaries expense A/c Dr $2,860($260 × 11 days)Salary payable A/c Dr $780To Cash A/c $3,640(Being the payment is recorded)3. The year-end adjusting balance would be= Salaries Payable before adjustment + adjustment balance= $0 + $780=$780...