A Company Recorded 2 Days of Accrued Salaries of $1,400

question 97

Multiple Choice

A company recorded 2 days of accrued salaries of $1,400 for its employees on January 31. On February 9, it paid its employees $7,000 for these accrued salaries and for other salaries earned through February 9. The January 31 and February 9 journal entries are:

• A)\[\begin{array} { | l | l | r | r | }
• \hline 1 / 31 & \text { Salaries Expense } & 1400 & \\
• \hline & \text { Salaries Payable } & & 1,400 \\
• \hline 2 / 9 & \text { Salaries Payable } & 7,000 & \\
• \hline & \text { Salaries Expense } & 1400 & \\
• \hline & \text { Cash } & & 7,000 \\
• \hline \hline
• \end{array}\]
• B)\[\begin{array} { | l | l | r | r | }
• \hline 1 / 31 & \text { Salaries Payable } & 1,400 & \\
• \hline & \text { Salaries Expense } & & 1,400 \\
• \hline 2 / 9 & \text { Salaries Expense } & 5,600 & \\
• \hline & \text { Salaries Payable } & 1,400 & \\
• \hline & \text { Cash } & & 7,000 \\
• \hline
• \end{array}\]
• C)\[\begin{array} { | l | l | r | r | }
• \hline \hline 1 / 31 & \text { Salaries Expense } & 1,400 & \\
• \hline & \text { Cash } & & 1,400 \\
• \hline 2 / 9 & \text { Salaries Expense } & 7,000 & \\
• \hline & \text { Cash } & & 7,000 \\
• \hline
• \end{array}\]
• D)\[\begin{array} { | l | l | r | r | }
• \hline 1 / 31 & \text { Salaries Expense } & 1400 & \\
• \hline & \text { Salaries Payable } & & 1400 \\
• \hline 2 / 9 & \text { Salaries Expense } & 7,000 & \\
• \hline & \text { Cash } & & 7,000 \\
• \hline
• \end{array}\]
• E)\[\begin{array} { | l | l | r | r | }
• \hline \hline 1 / 31 & \text { Salaries Expense } & 1,400 & \\
• \hline & \text { Salaries Payable } & & 1,400 \\
• \hline 2 / 9 & \text { Salaries Expense } & 5,600 & \\
• \hline & \text { Salaries Payable } & 1,400 & \\
• \hline & \text { Cash } & & 7,000 \\
• \hline
• \end{array}\]

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Definitions:

Freight Charges

Fees associated with the transport of goods from one place to another, paid by the sender or receiver.

Recent Goods

Recent goods refer to merchandise or products that have been newly received or produced, often highlighted for their novelty or relevance to current trends.

Perpetual

An inventory system in which the inventory records are updated continuously to reflect purchases, sales, and inventory on hand in real time.

LIFO Method

An inventory costing method where the last items of inventory purchased are the first ones sold, used to calculate cost of goods sold and ending inventory.