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

2,300

   Salaries payable

2,300

[Note]

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