Question

Flagg, Inc. records adjusting entries at its December 31 year-end. At December 31, employees had earned $12,000 of unpaid and unrecorded salaries. The next payday is January 3, at which time $30,000 will be paid. Prepare the January 1 journal entry to reverse the effect of the December 31 salary expense accrual. a. Debit salaries expense $12,000; credit salaries payable $12,000. b. Debit salaries expense $18,000; debit salaries payable $12,000; credit cash $30,000. c. Debit salaries payable $18,000; credit cash $18,000. d. Debit salaries payable $12,000; credit salaries expense $12,000. e. Debit salaries expense $18,000; credit salaries payable $18,000.

          Flagg, Inc. records adjusting entries at its December 31 year-end. At December 31, employees had earned $12,000 of unpaid and unrecorded salaries. The next payday is January 3, at which time $30,000 will be paid. Prepare the January 1 journal entry to reverse the effect of the December 31 salary expense accrual.

a. Debit salaries expense $12,000; credit salaries payable $12,000.
b. Debit salaries expense $18,000; debit salaries payable $12,000; credit cash $30,000.
c. Debit salaries payable $18,000; credit cash $18,000.
d. Debit salaries payable $12,000; credit salaries expense $12,000.
e. Debit salaries expense $18,000; credit salaries payable $18,000.

Added by Loretta C.

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