r will pay its employees the following Monday (January 4) for the previous full week. Assume Cedar Park Senior Center has the explanation Requirements 1. Record the adjusting entry for accrued salaries on December 31. 2. Post the adjusting entry to the accounts involved, and show their balances after adjustments Print Done - X
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
![### Instruction on Recording Journal Entries for Salaries
**Accounts and Balances:**
- **Salaries Payable:**
- [empty]
- [empty]
- **Salaries Expense:**
- **Unadj. Bal.**: 520,000
- [empty]
---
**Requirement 3:** Record the journal entry for payment of salaries made on January 4. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
#### Journal Entry Table:
- **Date**: Jan 4
- **Accounts and Explanation**:
- [empty]
- **Debit**:
- [empty]
- **Credit**:
- [empty]
#### Notes:
- Ensure all entries are made accurately, adhering to accounting principles.
- The unadjusted balance for Salaries Expense is 520,000.
- Use the table to fill in the necessary details of the transaction for proper documentation.
---
### Graphs and Diagrams:
- There are no graphs or diagrams present in this image.
Please follow these instructions for educational purposes to ensure accurate accounting records.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5e2fd762-57f2-4a6c-b507-d1ed282af660%2F179f5779-36e1-434f-bcfa-874e844d655b%2Finj27be_processed.jpeg&w=3840&q=75)
![**Payroll Adjustment Exercise**
Cedar Park Senior Center has a weekly payroll of $22,500. December 31 falls on Thursday, and they will pay employees the following Monday (January 4) for the full previous week. The center has a five-day workweek and an unadjusted balance in Salaries Expense of $520,000.
### Instructions:
#### Requirements
1. **Record the Adjusting Entry:**
- Record the adjusting entry for accrued salaries on December 31.
- Use the format: date, accounts and explanation, debit, and credit.
2. **Post Adjusting Entry:**
- Post the adjusting entry to the accounts involved.
- Show the balances after adjustments.
### Worksheet:
1. **Requirement 1**:
- **Date**: Dec. 31
- **Accounts and Explanation**:
- [Detailed account entries are to be filled by the student.]
- **Debit**: [Amount]
- **Credit**: [Amount]
- **Explanation**: Describe the nature of the adjustment.
2. **Requirement 2**:
- **Salaries Payable** and **Salaries Expense** tables:
- **Salaries Payable:**
- [Transaction amounts and balance updates]
- **Salaries Expense:**
- **Unadj. Bal.**: 520,000
- [Transaction amounts and balance updates]
- Use "Dec. 31" for the posting reference and calculate the ending balances.
*Ensure calculations and postings reflect the payroll for the days worked up to December 31st.*
Use this exercise to practice adjusting entries, understanding payroll accounting, and enhancing financial accuracy skills.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5e2fd762-57f2-4a6c-b507-d1ed282af660%2F179f5779-36e1-434f-bcfa-874e844d655b%2F151p8g5_processed.jpeg&w=3840&q=75)
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