On December 31, 2016, Axle Services, Inc
prepared the following accrual adjustment:
Salaries Expense 1,000
Salaries Payable 1,000
The company paid salaries amounting to $1,500 on January 7, 2017 for the two-week pay period that ended on January 6, 2017. Journalize the entries for January 1, 2017 and January 7, 2017, assuming the company uses reversing entries.
What will be an ideal response
On January 1, Axle Services, Inc. will record the reversing entry as follows:
Salaries Payable 1,000
Salaries Expense 1,000
On January 07, Axle will record the salaries payment entry as follows:
Salaries Expense 1,500
Cash 1,500
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