Flagg Records Adjusting Entries at Its December 31 Year End

question 174

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

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Definitions:

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The abstract standards in a society or group that define ideal principles.

Abstract Standards

General guidelines or criteria not tied to specific examples or cases, often used for evaluation.

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Values

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