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Immediately after recording the first payroll in January of 2022, the accountants discovered that $500,000 of accrued salaries from 2021 were not recognized in 2021. Instead, they were recognized when they were paid in 2022. The January 2022 journal entry necessary to correct this error would include: a. No entry, the error has self corrected b. Debit Retained Earnings $500,000 c. Debit Salaries Expense $500,000 d. Credit Salaries Payable $500,000

Immediately after recording the first payroll in January of 2022, the accountants discovered that $500,000 of accrued salaries from 2021 were not recognized in 2021. Instead, they were recognized when they were paid in 2022. The January 2022 journal entry necessary to correct this error would include: a. No entry, the error has self corrected b. Debit Retained Earnings $500,000 c. Debit Salaries Expense $500,000 d. Credit Salaries Payable $500,000

FINANCIAL ACCOUNTING
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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Immediately after recording the first payroll in January of 2022, the accountants discovered that $500,000 of accrued salaries from 2021 were not recognized in 2021. Instead, they were recognized when they were paid in 2022. The January 2022 journal entry necessary to correct this error would include: a. No entry, the error has self corrected b. Debit Retained Earnings $500,000 c. Debit Salaries Expense $500,000 d. Credit Salaries Payable $500,000
Transcribed Image Text:Immediately after recording the first payroll in January of 2022, the accountants discovered that $500,000 of accrued salaries from 2021 were not recognized in 2021. Instead, they were recognized when they were paid in 2022. The January 2022 journal entry necessary to correct this error would include: a. No entry, the error has self corrected b. Debit Retained Earnings $500,000 c. Debit Salaries Expense $500,000 d. Credit Salaries Payable $500,000
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