Explanation The reason adjusting entry is needed for accrued salary expense: At the end of each accounting period, every business reports its performance through the preparation of financial statements as reports. So as to be useful to many users of financial statements they must be up-to-date. Accounts such as cash, Equipment, Accounts payable, Common stock and dividends are up-to date and there is no need of adjustment at the end of the accounting period. Accounts such as Accounts receivable , Supplies, Salary expense and Salary payable may not be up to date as of the last day of the accounting period. Because few transactions that took place during the month may not have been recorded. Accrued salaries, which are owed to the employees however not been paid, are an expense related to the current period but also represent a liability or debt that is owed by the business...

Financial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)

12th Edition

ISBN: 9780134833156

Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

Publisher: PEARSON

See similar textbooks

Videos

Question

Chapter 3, Problem 3.3S

To determine

To Explain: The employee about the reason adjusting entry is needed for accrued salary expense.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 3, Problem 3.2S

Chapter 3, Problem 3.4S

Students have asked these similar questions

ANSWER THIS GENERAL ACCOUNTING PROBLEM

A factory ball bearings for the industry solve this accounting questions

GENERAL ACCOUNTING PROBLEM

Chapter 3 Solutions

Financial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)

Ch. 3 - If Oxbow Corporation dees not record a sale mace...Ch. 3 - Which of the following transactions would be...Ch. 3 - A physician performs medical services for a...Ch. 3 - The Animal Adventure zoo gift shop sells stuffed...Ch. 3 - According to U S GAAP, when should revenue be...Ch. 3 - Prob. 6QC Ch. 3 - Prob. 7QC Ch. 3 - Prob. 8QC Ch. 3 - What data flows from the statement of retained...Ch. 3 - Which financial statement reports assets,...

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

The employee about the reason adjusting entry is needed for accrued salary expense.

Solution Summary: The author explains the reason adjusting entry is needed for accrued salary expense, stating the Expense Recognition Principle, which states that every business organization should recognize the revenue when it is earned.

Videos

To Explain: The employee about the reason adjusting entry is needed for accrued salary expense.

Want to see the full answer?

Chapter 3 Solutions