Any Accountants on here?

[buster]

At the end of Year X1, the controller of Company X made an adjusting entry to recognize salary expense of $20,000 that had been earned but not paid. On the first payday of Year X2, the company paid its employees $50,000. This payment included the $20,000 earned in Year X1. The proper entry at the time of the $50,000 payment would be to:
A. debit salary expense $50,000 and credit cash $50,000.
B. debit salaries payable $20,000 and credit cash $20,000.
C. debit salary expense $30,000, debit salaries payable $20,000 and credit cash $50,000.
D. debit salaries payable $50,000 and credit cash $50,000.

 

[KernelK]

C.

 

[buster]

Thanks, are you sure?

 

[BubbaFL]

I'll second C

 

[buster]

 

[GROUCHO MARX]

Sounds like the basic accounting course. Most companies pay semi-monthly to avoid such headaches.

Yes, C is the answer.

 

[buster]

At the end of Year X1, the controller of Lending Institution A reviewed the institution's unadjusted trial balance. He saw that interest of $100,000 had been earned but wouldn't be received until Year X2. He then made the proper adjusting entry. Which entry did he make?
A. Debit interest receivable $100,000 and credit interest income $100,000.
B. Debit interest income $100,000 and credit interest receivable $100,000.
C. Debit cash $100,000 and credit interest income $100,000.
D. Debit interest receivable $100,000 and credit cash $100,000.


I'm thinkin A for this one.

 

[buster]

Originally Posted By: BubbaFL
I'll second C


Not B?

 

[GROUCHO MARX]

Originally Posted By: buster
At the end of Year X1, the controller of Lending Institution A reviewed the institution's unadjusted trial balance. He saw that interest of $100,000 had been earned but wouldn't be received until Year X2. He then made the proper adjusting entry. Which entry did he make?
A. Debit interest receivable $100,000 and credit interest income $100,000.
B. Debit interest income $100,000 and credit interest receivable $100,000.
C. Debit cash $100,000 and credit interest income $100,000.
D. Debit interest receivable $100,000 and credit cash $100,000.


I'm thinkin A for this one.


A.

 

[tightwad]

Originally Posted By: GROUCHO MARX
Originally Posted By: buster
At the end of Year X1, the controller of Lending Institution A reviewed the institution's unadjusted trial balance. He saw that interest of $100,000 had been earned but wouldn't be received until Year X2. He then made the proper adjusting entry. Which entry did he make?
A. Debit interest receivable $100,000 and credit interest income $100,000.
B. Debit interest income $100,000 and credit interest receivable $100,000.
C. Debit cash $100,000 and credit interest income $100,000.
D. Debit interest receivable $100,000 and credit cash $100,000.


I'm thinkin A for this one.


A.


Yes, A for the second question, C for the first. (I'm a CPA, at least as long as I send the state of Texas $270 every year!)

 

[buster]

Thanks!

 

[cwing6]

I think you already have the answers, but I just saw the post. I am in this profession and the answers given are correct: 1.) C; 2.) A.

 

[FoxS]

+1