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8 Sep 2018
14. The December 31, 2015 adjusting entries for Mary Loretti's interior design company included accrual of $760 in assistant salaries. This amount will be paid on January 10, as part of the normal $1,200 salary for two weeks. The bookkeeper for the company uses reversing entries where appropriate. The entry to record the payment of the assistant's salary January 10, 2016 was: Jan 10 Salaries Expense 1,200 Cash 1,200 What was the January 1, 2016 reversing entry? a. Salaries Payable 760 Salaries Expense 440 Cash 1,200 b. Salaries Payable 440 Salaries Expense 440 c. Salaries Payable 760 Salaries Expense 760 d. Cash 1,200 Salaries Expense 1,200 e. The bookkeeper would not make a reversing entry for this transaction.
14. The December 31, 2015 adjusting entries for Mary Loretti's interior design company included accrual of $760 in assistant salaries. This amount will be paid on January 10, as part of the normal $1,200 salary for two weeks. The bookkeeper for the company uses reversing entries where appropriate. The entry to record the payment of the assistant's salary January 10, 2016 was: Jan 10 Salaries Expense 1,200 Cash 1,200 What was the January 1, 2016 reversing entry? a. Salaries Payable 760 Salaries Expense 440 Cash 1,200 b. Salaries Payable 440 Salaries Expense 440 c. Salaries Payable 760 Salaries Expense 760 d. Cash 1,200 Salaries Expense 1,200 e. The bookkeeper would not make a reversing entry for this transaction.
Bunny GreenfelderLv2
9 Sep 2018
Related questions
| Alison and Chuck Renny began operations of their furniture repair shop (Lazy Sofa Furniture, Inc.) on January 1, 2014. The annual reporting period ends December 31. The trial balance on January 1, 2015, appears below (amounts are rounded to thousands of dollars to simplify). |
| Account Titles | Debit | Credit | ||||
| Cash | $ | 5 | ||||
| Accounts Receivable | 4 | |||||
| Supplies | 3 | |||||
| Equipment | 6 | |||||
| Accumulated Depreciation | $ | 0 | ||||
| Software | 12 | |||||
| Accumulated Amortization | 3 | |||||
| Accounts Payable | 7 | |||||
| Notes Payable (long-term) | 0 | |||||
| Salaries and Wages Payable | 0 | |||||
| Interest Payable | 0 | |||||
| Income Tax Payable | 0 | |||||
| Unearned Revenue | 0 | |||||
| Common Stock | 15 | |||||
| Retained Earnings | 5 | |||||
| Service Revenue | 0 | |||||
| Supplies Expense | 0 | |||||
| Depreciation Expense | 0 | |||||
| Salaries and Wages Expense | 0 | |||||
| Amortization Expense | 0 | |||||
| Interest Expense | 0 | |||||
| Income Tax Expense | 0 | |||||
| Totals | $ | 30 | $ | 30 | ||
| Transactions during 2015 (summarized in thousands of dollars) follow: | |
| 1. | Borrowed $28 cash on July 1, 2015, signing a six-month note payable. |
| 2. | Purchased equipment for $16 cash on July 1, 2015. |
| 3. | Issued additional shares of common stock for $4. |
| 4. | Earned revenues for 2015 in the amount of $71, including $8 on credit and $63 received in cash. |
| 5. | Recognized salaries and wages expenses for 2015 of $42, paid in cash. |
| 6. | Purchased additional equipment, $4 cash. |
| 7. | Collected accounts receivable, $7. |
| 8. | Paid accounts payable, $10. |
| 9. | Purchased on account supplies for future use, $9. |
| 10. | Received a $3 cash deposit on work to start January 15, 2016. |
| Data for adjusting journal entries: | |
| 11. | Amortization for 2015, $3. |
| 12. | Supplies of $5 were counted on December 31, 2015. |
| 13. | Depreciation for 2015, $1. |
| 14. | Accrued interest on notes payable of $1. |
| 15. | Wages earned since the December 24 payroll not yet paid, $2. |
| Income tax for 2015 was $3 and will be paid in 2016 Prepare balance sheet. Prepare the closing journal entry. Post the closing entry and prepare a post-closing trial balance | |
