Chapter 4, Problem 21Q

(a)

To determine

Reversing Entries: Reversing Entries are made at the beginning of the accounting period when the accountant needs to cancel any entry made in the previous accounting period. It is done in order to eliminate any errors that might have occurred in the calculation of the revenue or expenses, and henceforth, increase the efficiency of the financial statements for an improved decision making.

Accrued Salaries Payable: Accrued salaries payable are a part of those salaries for the employees that have been incurred during the accounting period, which means the employees have earned those salaries but haven’t received them. It is a liability for the company.

To Journalize: Reversing entries for accrued salaries payable account and indicate the salaries and wages expense account balance of the company.

(b)

To determine

 To Journalize: by assuming Reversing entries have not been made.