Adjusting, Closing, and Reversing EntriesPrepare adjusting, closing, and payroll entries for wages using two methods.Wages paid during 20-1 are $24,080.Wages earned but not paid (accrued) as of December 31, 20-1, are $240.On January 3, 20-2, payroll of $920 is paid, which includes the $240 of wages earned but not paid in December.1. Prepare the entries without making a reversing entry. Adjusting Entry: 12/31/-1Closing Entry: 12/31/-1Payment of Payroll: 1/3/-22. Prepare the entries with the use of a reversing entry.Adjusting Entry: 12/31/-1Closing Entry: 12/31/-1Reversing Entry: 1/1/-2Payment of Payroll: 1/3/-2II II 1I I00

Adjusting Entry: Adjusting entry is made to record any unrecognized income or expenses for the…

Answered: Adjusting Entry: 12/31/-1 Closing…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Adjusting, Closing, and Reversing Entries

Prepare adjusting, closing, and payroll entries for wages using two methods.

Wages paid during 20-1 are $24,080.
Wages earned but not paid (accrued) as of December 31, 20-1, are $240.
On January 3, 20-2, payroll of $920 is paid, which includes the $240 of wages earned but not paid in December.

1. Prepare the entries without making a reversing entry.

Adjusting Entry: 12/31/-1
Closing Entry: 12/31/-1
Payment of Payroll: 1/3/-2
2. Prepare the entries with the use of a reversing entry.
Adjusting Entry: 12/31/-1
Closing Entry: 12/31/-1
Reversing Entry: 1/1/-2
Payment of Payroll: 1/3/-2
II II 1I I
00

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