Adjusting Entries for Salaries Expense

Exercise 5

On December 16, 20x1, Entity E hired a new staff with a monthly salary of $4,600. Monthly salary is paid on the 15th of each month. Prepare journal entries on the following dates:

December 16, 20x1

        No journal entry is prepared when a new staff is hired.

December 31, 20x1

Salaries expense


   Salaries payable



Salaries expense = $4,600 / 2 = $2,300