Answered: Fighting Irish

Business

Accounting

Fighting Irish

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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Question

Fighting Irish Incorporated pays its employees $5,460 every two weeks ($390/day). The current two-week pay period ends on December 28, 2024, and employees are paid $5,460. The next two-week pay period ends on January 11, 2025, and employees are paid $5,460.

Required:

Record the adjusting entry on December 31, 2024.
Calculate the 2024 year-end adjusted balance of Salaries Payable (assuming the balance of Salaries Payable before adjustment in 2024 is $0).

Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.

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