company incurs employee salaries of veek of December which will be paid

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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I need the answer for 14 only
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
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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