Flagg records adjusting entries at its December 31 year-end. At December 31, employees had earned $12,000 of unpaid and unrecorded salaries. The next payday is January 3, at which time $30,000 will be paid. Prepare the journal entry on January 3 to record payment assuming the adjusting and reversing entries were made on December 31 and January 1.
A. Debit Salaries payable $30,000; credit Cash $30,000.
B. Debit Salaries expense $18,000; credit Cash $18,000.
C. Debit Salaries expense $18,000, debit Salaries payable $12,000; credit Cash $30,000.
D. Debit Salaries expense $12,000; debit Salaries payable $18,000; credit Cash $30,000.
E. Debit Salaries expense $30,000; credit Cash $30,000.
Answer: E
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