{"id":192170,"date":"2025-02-17T10:50:08","date_gmt":"2025-02-17T10:50:08","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=192170"},"modified":"2025-02-17T10:50:11","modified_gmt":"2025-02-17T10:50:11","slug":"adjusting-entries-for-accrued-salaries-perimeter-realty-co","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/02\/17\/adjusting-entries-for-accrued-salaries-perimeter-realty-co\/","title":{"rendered":"Adjusting Entries for Accrued Salaries Perimeter Realty Co"},"content":{"rendered":"\n<p>Adjusting Entries for Accrued Salaries Perimeter Realty Co. pays weekly salaries of $14,800 on Friday for a five-day workweek ending on that day. a. Journalize the necessary adjusting entry at the end of the accounting period, assuming that the period ends on Wednesday. If an amount box does not require an entry, leave it blank. Salaries Expense fill in the blank fill in the blank Salaries Payable fill in the blank fill in the blank Feedback b. Journalize the necessary adjusting entry at the end of the accounting period, assuming that the period ends on Thursday. If an amount box does not require an entry, leave it blank. Salaries expense fill in the blank fill in the blank Saleries payable fill in the blank fill in the blank<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-ast-global-color-6-color\"><strong>The Correct Answer and Explanation is :<\/strong><\/mark><\/p>\n\n\n\n<p><strong>a. Journalize the necessary adjusting entry at the end of the accounting period (Wednesday):<\/strong><\/p>\n\n\n\n<p>Given that Perimeter Realty Co. pays weekly salaries of $14,800 for a five-day workweek, the daily salary expense is calculated as:<\/p>\n\n\n\n<p>[<br>\\text{Daily Salary} = \\frac{\\text{Weekly Salary}}{5} = \\frac{14,800}{5} = 2,960<br>]<\/p>\n\n\n\n<p>Since the accounting period ends on Wednesday, which means three days (Monday, Tuesday, and Wednesday) of work have been completed but no payment has been made yet, the adjusting entry would be for three days of accrued salaries.<\/p>\n\n\n\n<p>Thus, the necessary adjusting entry would be:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Salaries Expense:<\/strong> $2,960 \u00d7 3 = $8,880<\/li>\n\n\n\n<li><strong>Salaries Payable:<\/strong> $8,880<\/li>\n<\/ul>\n\n\n\n<p>The adjusting journal entry is:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Account<\/th><th>Debit ($)<\/th><th>Credit ($)<\/th><\/tr><\/thead><tbody><tr><td>Salaries Expense<\/td><td>8,880<\/td><td><\/td><\/tr><tr><td>Salaries Payable<\/td><td><\/td><td>8,880<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>b. Journalize the necessary adjusting entry at the end of the accounting period (Thursday):<\/strong><\/p>\n\n\n\n<p>If the accounting period ends on Thursday, then four days (Monday, Tuesday, Wednesday, and Thursday) of work have been completed. The daily salary expense is still $2,960, and for four days, the total accrued salary expense would be:<\/p>\n\n\n\n<p>[<br>\\text{Salaries Expense} = 2,960 \\times 4 = 11,840<br>]<\/p>\n\n\n\n<p>So, the adjusting entry would be:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Salaries Expense:<\/strong> $11,840<\/li>\n\n\n\n<li><strong>Salaries Payable:<\/strong> $11,840<\/li>\n<\/ul>\n\n\n\n<p>The adjusting journal entry is:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Account<\/th><th>Debit ($)<\/th><th>Credit ($)<\/th><\/tr><\/thead><tbody><tr><td>Salaries Expense<\/td><td>11,840<\/td><td><\/td><\/tr><tr><td>Salaries Payable<\/td><td><\/td><td>11,840<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Explanation:<\/strong><\/p>\n\n\n\n<p>Adjusting entries are necessary to match expenses with the period in which they are incurred. In this case, since salaries are paid at the end of the week (on Friday), but the accounting period may end on different days of the week, we need to accrue the salary expense for the days worked before the period ends.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>For the first case (Wednesday), the company owes salaries for three days, which total $8,880 (since $2,960 is earned daily).<\/li>\n\n\n\n<li>For the second case (Thursday), the company owes salaries for four days, totaling $11,840.<\/li>\n<\/ul>\n\n\n\n<p>These adjusting entries ensure that the company&#8217;s financial statements reflect the correct expense and liability, accurately matching the work performed in the period, even though payment will be made later.<\/p>\n\n\n\n<p>Now, I&#8217;ll generate an image of the journal entries for you.<\/p>\n\n\n\n<p>Here is the image of the journal entries for accrued salaries, showing the adjusting entries for both Wednesday and Thursday. Let me know if you need any further clarification!<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/learnexams.com\/blog\/wp-content\/uploads\/2025\/02\/image-764.png\" alt=\"\" class=\"wp-image-192171\"\/><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Adjusting Entries for Accrued Salaries Perimeter Realty Co. pays weekly salaries of $14,800 on Friday for a five-day workweek ending on that day. a. Journalize the necessary adjusting entry at the end of the accounting period, assuming that the period ends on Wednesday. If an amount box does not require an entry, leave it blank. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-192170","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/192170","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=192170"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/192170\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=192170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=192170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=192170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}