How to Adjust Journal Entries?
I'm currently in an introductory accounting course and I’m having difficulty with adjusting entries. Based on the information I have I have to prepare a journal entry for it and I still have no clue. The transaction is:
The company’s Managing Director, who earns $800 per day, worked the last six days of the year and will be paid on January 4th.
Any help would be really appreciated. Thank you!
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6 x 800 = $4,800 wages (or salaries) expense has accrued; however, it has not been yet paid. That makes it a payable (liability).
Dr Salaries Expense 4,800
Cr Salaries Payable 4,800