**Adjusting Entry for Weekly Salaries**Buster Industries pays weekly salaries of $29,000 on Friday for a five-day work week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Tuesday is:- **Option A:** - Debit Salaries Payable, $11,600 - Credit Cash, $11,600- **Option B:** - Debit Salary Expense, $11,600 - Credit Salaries Payable, $11,600- **Option C:** - Debit Drawing, $11,600 - Credit Cash, $11,600- **Option D:** - Debit Salary Expense, $11,600 - Credit Drawing, $11,600**Explanation:**The fiscal period ends on Tuesday, so salaries need to be accrued for the two days (Monday and Tuesday), which account for 2/5 of the weekly salary. Calculating 2/5 of $29,000 results in $11,600. The correct adjusting entry would ensure that the salary expenses are matched to the period in which they are incurred, even though the cash payment is made later on Friday.

Salaries for 5 day = $29,000 Monday to Tuesday = 2 days Salaries accrued on Tuesday = Total salaries…

Buster Industries pays weekly salaries of $29,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Tuesday is Oa. debit Salaries Payable, $11,600; credit Cash, $11,600 Ob. debit Salary Expense, $11,600; credit Salaries Payable, $11,600 Oc. debit Drawing, $11,600; credit Cash, $11,600 Od. debit Salary Expense, $11,600; credit Drawing $11,600

Buster Industries pays weekly salaries of $29,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Tuesday is Oa. debit Salaries Payable, $11,600; credit Cash, $11,600 Ob. debit Salary Expense, $11,600; credit Salaries Payable, $11,600 Oc. debit Drawing, $11,600; credit Cash, $11,600 Od. debit Salary Expense, $11,600; credit Drawing $11,600

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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