Assume that no reversing entries are made by the entity. How would theentity record the transaction for payment of wages if $5200 was accruedfor wages at the end of the year and the first payment of wages in thefollowing year was $63 900?O DR Salaries expense $63 900; CR Cash $63 900O DR Salaries expense $63 900; CR Salaries payable $5200; CR Cash $58 700O DR Salaries expense $69 100; CR Salaries payable $5200; CR Cash $63 900O DR Salaries payable $5 200; DR Salaries expense $58 700; CR Cash $63 900

Solution: Accrued salaries and wages are recorded through Salaries payable. In next period, when…

Assume that no reversing entries are made by the entity. How would the entity record the transaction for payment of wages if $5200 was accrued or wages at the end of the year and the first payment of wages in the ollowing year was $63 900?

Assume that no reversing entries are made by the entity. How would the entity record the transaction for payment of wages if $5200 was accrued or wages at the end of the year and the first payment of wages in the ollowing year was $63 900?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The payroll register of Seaside Architecture Company indicates $980 of social security taxes and…

A: Withheld tax applicable to employment income. A withheld tax is a type of income tax which paid to…

Q: CPA Co.'s allowance for doubtful accounts was P1,000,000 at the end of 2021 and P900,000 at the end…

A: The allowance for doubtful account is maintained to record the bad debt expense for the firm. The…

Q: An entity entered into a one-year tenancy contract from March 1, 2021, to February 28, 2022. The…

A: Solution: Amount booked as rental expenses = P1,080,000 Total rental expense from March 1, 2021 to…

Q: 3. Consider the following accounts and determine if the account is a current liability, a long-term…

A: Current liabilities are short term obligation that to be paid within one year and liabilities having…

Q: 13. How much is the current tax income tax expense for 2003? (b) P22,400 (a) P23,030 (c) P19,460 (d)…

A: As per our protocol we provide solution to the one question only and you have asked to answer two…

Q: December Norway Company reported that the year-end is ! receivable of P400,000 from a customer that…

Q: expected to produce P70,000, which must be allocated to unse P105,000. The following are some of the…

A: The answer is stated below:

Q: Machinery Corp transfers the machine, and collects the total contract price on February 1, 2020 The…

A: The analysis of five step model of revenue recognition with respect to the given case is presented…

Q: What amount should be reported as doubtful accounts expense in the income statement for 2020? From…

A: The management estimates a portion of dues remain uncollectible, so they prefer to record that…

Q: If at the end of the second year of a 4-year contract, a company determines total estimated costs…

A: International accounting standard require recognition of loss if the estimated costs exceed…

Q: Mathew Corporation's had a specific receivable from a customer in the amount of P 600,000 as of…

A: carrying value of receivables=600000

Q: The F Company uses the allowance method is used to account for uncollectible receivables. It had the…

A: Receivables, loans, and other obligations that are likely to be paid are referred to as…

Q: On December 1, 2020, RB Company assigned on a non-notification basis accounts receivable of…

A: Money owed to a seller by customers who have not yet made payment for their purchases is referred to…

Q: Indonesia Company had P2,000,000 note payable due on June 30, 2021. Under the existing loan facility…

A: Non-current liabilities are those which are due to be paid in not less than 1 year. Those loans or…

Q: The entity purchases P20,000 fixtures for its use on account. Which of the following will be…

A: Purchase of fixtures of P20,000 on account Journal entry will be as follows Fixture…

Q: During the current year, Stern Company had pretax accounting income of $42 million. Stern's only…

A: The differences that may arise due to the variation between the value of assets and liabilities as…

Q: The following accounts and their balances appear in an unadjusted trialbalance of Achiever Company…

A: Current assets refers to the assets which can be held to the maximum of 12 months. Current…

Q: For the year ended December 31, 2023, Sheffield Ltd. reported income before income taxes of…

A: The temporary difference is the difference which has occurred in the transactions which will be…

Q: For the year ended December 31, 2023, Crane Ltd. reported income before income taxes of $180,000.…

A: Net deferred tax liability for Crane Ltd. for the year ended December 31, 2023, is…

Q: Sheridan Corporation borrowed $62,400 on November 1, 2020, by signing a $63,600, 3-month,…

A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…

Q: The following are entries on payroll transactions under government entity. I. Due to Officers and…

A: The question is multiple choice question and related to Journal entry. The entries on payroll…

Q: Accounting for Special Transactions On January 1, 2019, Castrano enters into a non-cancellable…

A: As per IFRS 115 Revenue Recognition Revenue is to be recognised if all recognition criteria…

Q: n July 1, 2021, A Company sold goods to a customer for P540,000 in exchange for a 4-year, 12%…

A: solution given Face value of note 894697.80 Life 4 years Interest rate 12%…

Q: 11. An entity received a seven year zero interest bearing note on February 1, 2019 in exchange for a…

A: Interest on the note prevailing on just December 31 will be considered as the interest rate for…

Q: bly assured, what

A: On 01.01.2020, Entity granted a franchise agreement to a franchisee Franchise agreement = Franchise…

Q: balance for the unearned revenue from points as of yearend

A: Unearned revenue is the revenue that is not yet earned. It is a current liability having credit…

Q: Required: Assuming an income tax rate of 25% and 2024 income tax payable of $930,000, prepare the…

A: Deferred tax refers to the temporary differences between taxable income reported for tax purposes…

Q: Joel received a 1099-C; S6000 in box 2 had been cancelled by credit card co. as result of agreement.…

A: The taxing of canceled debt is the primary notion at work in this situation. When a creditor…

Q: On January 1, 20x1, an entity granted a franchise to a franchisee. The franchise agreement required…

A: SOLUTION- AS PER FASB 45 ACCOUNTING FOR FRANCHISE FEE REVENUE , THE REVENUE FROM THE FRANCHISE FEE…

Q: 20. Reznikov, Inc. provides an incentive compensation plan under. which its president receives a…

A: #Note: Requirement 20 is answered. The bonus rate is after charging bonus, thus [(income before…

Q: KPL Ltd has a year end of 31 March 2021. During the year it paid £1,600 for rent. At the start of…

A: Amount that charged to the income statement is amount that accrued during the year. Assuming KPL ltd…

Q: A company reports 2024 pretax accounting income of $10 million, but because of a single temporary…

A: Income Tax Accounting involves the systematic recording and reporting of a company's financial…

Q: A company’s accounts payable dated December 31, 2021, totaled P1,000,000 before any necessary…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: Title Use the information for Sorpon Corporation in E18-6, and assume that the company reports…

A: Taxable income includes the income earned to be taxed as obligation to be given to the government…

Q: For the year ended December 31, 2023, Bonita Ltd. reported income before income taxes of $100,000.…

A: Taxable income is the income subject to tax. The taxable income is used to determine tax liability,…

Q: allowance for doubtful accounts was P1,000,000 at December 31, and P900,000 at January 1, 2020. For…

A: Allowance for doubtful debt: It can be defined as a contra asset account that reduces the amount of…

Q: How much is the restated balance of AMSTERDAM's retained earnings account at January 1, 2021?

A: Retained earnings are an important accounting topic to understand. The term refers to a company's…

Q: For the year ended December 31, 2023, Tamarisk Ltd. reported income before income taxes of $98,000.…

A: As you have asked multiple question we can solve only first three sub-parts at a time so, please…

Q: On January 1, 20x9, COMPANY B enters into a non-cancellable contract with Y COMPANY for the sale of…

A: five major steps of recognition of revenue : Identification of contract with the customer.…

Q: At 30 June 20X3, the gross amount of the accounts receivable of Atom Ltd (Atom) was $10 000. At the…

A: Tax base of an asset = Carrying amount + Future deductible amounts − Future assessable amounts =…

Q: items appear on the balance sheet of a company with a one-year operating cycle. Identifythe proper…

Q: Year Pretax Income (Loss) Tax Rate 2018 $183,000 17% 2019 69,000 17 2020 (206,800) 23…

A: Amount of Loss to be Reported for Year 2020= (206,800) Loss for year will be reported as 206,800 and…

Concept explainers

Payroll Entries

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll processes form the bedrock of every organization as it contains sensitive information on the ‘wage and paycheck’ portion of the company’s strength—its employees. The organization needs to keep a track of the employees currently on the payroll, the net payout for the company, the record of transactions related to the employees including deductions and payroll taxes to identify the liability and its effect on the balance sheet (and other financial statements). Payroll records also include qualitative factors such as the conduct of the employee.

Question

Assume that no reversing entries are made by the entity. How would the
entity record the transaction for payment of wages if $5200 was accrued
for wages at the end of the year and the first payment of wages in the
following year was $63 900?
O DR Salaries expense $63 900; CR Cash $63 900
O DR Salaries expense $63 900; CR Salaries payable $5200; CR Cash $58 700
O DR Salaries expense $69 100; CR Salaries payable $5200; CR Cash $63 900
O DR Salaries payable $5 200; DR Salaries expense $58 700; CR Cash $63 900

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

ABD Company pays a weekly payroll of $285,000 that includes federal taxes withheld of $38,100, FICA taxes withheld of $23,670, and 401(k) withholdings of $27,000. (Although not required, preparing journal entries may help you answer questions 1A- What is the effect of assets from the transaction(s)? TWO ANSWERS REQUIRED - (Increase or decrease and $ how much) 1B- What is the effect of liabilities from the transaction(s)? TWO ANSWERS REQUIRED - (Increase or decrease and $ how much)
On 01.10.20X1, TK transfers the annual rent of EUR 7,000 for the business and office space for one year in advance. Which of the following statements regarding business transactions in 20X1 is/are correct? O The annual rent reduces the profit in 20X1 by EUR 7,000. O Another liability must be recognized. O The payout is EUR 7,000 and the expense is EUR 1,750. O An anticipatory deferred item must be formed.
In 2021, DFS Medical Supply collected rent revenue for 2022 tenant occupancy. For income tax reporting, the rent is taxed when collected. For financial statement reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy the rental property. The deferred portion of the rent collected in 2021 amounted to $300,000 at December 31, 2021. DFS had no temporary differences at the beginning of the year.Required:Assuming an income tax rate of 25% and 2021 income tax payable of $950,000, prepare the journal entry to record income taxes for 2021.
Please help with the question that is attached. The question is highlighted in yellow. Thank you :)
Hi, How do i record the journal entires for these transcations? Thanks
53. CPA Company used the allowance method of accounting for uncollectible accounts. During 2021, the entity had charged 750,000 to bad debt expense and wrote off accounts receivable of 780,000 as uncollectible. What was the decrease in working capital?
Under the accrual basis, rental income of EM Corporation for the calendar year 2019 is ₱600,000. Additional information regarding rental income are presented as follows: Unearned rental income, January 1, 2019 –₱50,000; Unearned rental income, December 31, 2019 –₱75,000; Accrued rental income, January 1, 2019 –₱30,000; Accrued rental income, December 31, 2019 –₱40,000. Under the cash basis, how much rental income should be reported? ₱ 625,000 ₱ 655,000 ₱ 585,000 ₱ 615,000
In December of 2019, a company received consulting services of $100,000. No entry was recorded for these service in 2019. The invoice for the services was received in January 2020 and recorded by debiting consulting expense and crediting accounts payable. This error was discovered in 2020 and was determined to be a material error. What is the impact of the error on the net income of 2019 and 2020? Provide the proper correcting journal enntry assuming a 30% tax rate.
Consider the following accounts and determine if the account is a current liability, a noncurrent liability, or neither. A. Cash B. Federal income tax payable this year C. Long-term note payable D. Current portion of a long-term note payable E. Note Payable due in four years F. Interest Expense G. State income tax
Please do not give solution in image format...Thank You
WHAT IS THE TOTAL AMOUNT INCLUDED IN THE "TRADE AND OTHER RECEIVABLE"