Question

Employees are paid every two weeks. On December 31, employees are owed $2,500 in salaries since the last payday on December 22. What is the adjusting journal entry?

D. credit salaries payable and debit salaries expense

The purpose of adjusting entries is to:

D. all of the above

Adjustments for prepaid expenses:

A. debit cash and credit salaries expense

 

B. credit cash and debit salaries expense

 

C. debit salaries payable and credit salaries expense

 

D. credit salaries payable and debit salaries expense

The purpose of adjusting entries is to:

A. record revenues in the period in which they are earned

 

B. record expenses in the period in which they are paid

 

C. ensure the balances on the income statement and balance sheet are correct

 

D. all of the above

10.0 Points

Adjustments for prepaid expenses:

A. decrease revenues and increase assets

 

B. decrease assets and increase expenses

 

C. decrease assets and increase revenues

 

D. decrease expenses and increase assets