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Concept explainers
Journalizing reversing entries
Ocean View Services had the following unadjusted balances at December 31, 2016: Salaries Payable, $0; Salaries Expense, $ 1,400. The following transactions have taken place at the end of 2016 and beginning of 2017:
2016 | |
Dec. 31 | Accrued Salaries Expense at December 31, $3,000. |
31 | Closed the Salaries Expense account. |
2017 | |
Jan. 1 | Reversed the accrued salaries . (Requirement 3 only) |
4 | Paid salaries of $4,400. This payment included the Salaries Payable amount, plus $1,400 for the first few days of January. |
Requirements
1. Open T-accounts for Salaries Payable and Salaries Expense using their unadjusted balances at December 31, 2016.
2.
Do not record the reversing entry on Jan. 1. Post to the accounts.
3. Open new T-accounts for Salaries Payable and Salaries Expense using their unadjusted balances at December 31, 2016. Journalize the entries assuming Ocean
View Services uses reversing entries. Don’t forget to record the reversing entry on
Jan. 1. Post to the accounts. Compare the balances with Requirement 2 balances.
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Chapter 4 Solutions
Horngren's Financial & Managerial Accounting (5th Edition)
- Quick answer of this accounting questionsarrow_forwardListed below are terms associated with the steps of the accounting processing cycle. Pair each item from List A with the item from List B that is most appropriately associated with it. List A 1. Source documents 2. Transaction analysis 3. Journal 4. Posting 5. Unadjusted trial balance 6. Adjusting entries 7. Adjusted trial balance 8. Financial statements 9. Closing entries 10. Post-closing trial balance List Barrow_forwardThe Marchetti Soup Company entered into the following transactions during the month of June: (1) purchased inventory on account for $165,000 (assume Marchetti uses a perpetual inventory system); (2) paid $40,000 in salaries to employees for work performed during the month; (3) sold inventory on account to customers for $200,000 that had a cost of $120,000; (4) collected $180,000 in cash from credit customers; and (5) paid on account to suppliers of inventory $145,000. Analyze each transaction and show the effect of each on the accounting equation for a corporation. Note: Amounts to be deducted should be indicated by a minus sign. Enter the net change on the accounting equation. Assets GETNE (3) (4) (5) (1) (2) Liabilities Paid-in capital + Retained Earnings + + + + + + + + +arrow_forward
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