X Company pays its employees twice amonth, on the 15th and the 28th. OnApril 15, it paid employee salaries of$2,000. This transaction would:Increase owner's equity by $2,000Decrease the balance in Salaries andWages Expense by $2,000Increase the balance in Salaries andWages Expense by $2,000Be recorded by a $2,000 debit toSalaries and Wages Expense and a$2,000 credit to Salaries and WagesPayableO None of the above

SOLUTION- Salary payable can be attributed to the type of payroll journal entry that shall be used…

Answered: X Company pays its employees twice a…

X Company pays its employees twice a month, on the 15th and the 28th. On April 15, it paid employee salaries of $2,000. This transaction would: *

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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Concept explainers

Payroll Entries

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll processes form the bedrock of every organization as it contains sensitive information on the ‘wage and paycheck’ portion of the company’s strength—its employees. The organization needs to keep a track of the employees currently on the payroll, the net payout for the company, the record of transactions related to the employees including deductions and payroll taxes to identify the liability and its effect on the balance sheet (and other financial statements). Payroll records also include qualitative factors such as the conduct of the employee.

Question

X Company pays its employees twice a
month, on the 15th and the 28th. On
April 15, it paid employee salaries of
$2,000. This transaction would:
Increase owner's equity by $2,000
Decrease the balance in Salaries and
Wages Expense by $2,000
Increase the balance in Salaries and
Wages Expense by $2,000
Be recorded by a $2,000 debit to
Salaries and Wages Expense and a
$2,000 credit to Salaries and Wages
Payable
O None of the above

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