company incurs employee salaries of veek of December which will be paid
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I need the answer for 14 only

Transcribed Image Text:Use the following to answer questions 13 – 14
The company incurs employee salaries of $75,000 for the
last week of December which will be paid on January 5th.
13. Record the adjusting entry on December 31st related to
the employee salaries
Account
Debit
Credit
14. $
Indicate by how much net income in the
income statement is higher or lower if the adjustment in
#13 is not recorded (if lower put
answer).
“in front of your
Expert Solution

Step 1
Adjusting journal entry:
When the company finalizes its accounts at the end of the fiscal year, any unrecognized income or expenses for the period are adjusted in accounts by adjusting entry at the end of the accounting period to accurately measure net income.
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