The Adjusting Entry to Record the Earned but Unpaid Salaries

question 116

Multiple Choice

The adjusting entry to record the earned but unpaid salaries of employees at the end of an accounting period is:

• A) Debit Unpaid Salaries and credit Salaries Payable.
• B) Debit Salaries Payable and credit Salaries Expense.
• C) Debit Salaries Expense and credit Cash.
• D) Debit Salaries Expense and credit Salaries Payable.
• E) Debit Cash and credit Salaries Expense.

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Definitions:

Machine-Hours

A measure of production volume or activity based on the number of hours machines are operated.

Machine-Hours

A measurement used in cost accounting to allocate expenses to products or job orders, based on the number of hours machines are operated.

Direct Labor-Hours

An indicator of the cumulative hours spent by workers directly engaged in the production process.

Estimated Total Manufacturing Overhead

The projected sum of all indirect costs associated with the production process, not inclusive of direct labor or materials.