Flagg Records Adjusting Entries at Its December 31 Year-End

question 1

Multiple Choice

Flagg 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 journal entry on January 3 to record payment assuming the adjusting and reversing entries were made on December 31 and January 1.

• A)Debit Salaries expense $12,000; debit Salaries payable $18,000; credit Cash $30,000.
• B)Debit Salaries expense $30,000; credit Cash $30,000.
• C)Debit Salaries payable $30,000; credit Cash $30,000.
• D)Debit Salaries expense $18,000,debit Salaries payable $12,000; credit Cash $30,000.
• E)Debit Salaries expense $18,000; credit Cash $18,000.

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Definitions:

Signature

A person's name or mark written by themselves, used as a proof of intention and identity in a document.

Laborer's Pension Fund

A retirement fund specifically designed for the benefit of labor union members.

Union Dues

Fees paid by workers to labor unions to cover the cost of union representation and activities.

Agent's Signature

An agent's signature is the act of signing documents by a person (the agent) who has been authorized to act on behalf of another person or entity (the principal), indicating consent or agreement.