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:

Grievance Procedures

Formal processes provided by organizations through which employees can raise concerns, complaints, or issues for resolution.

Unresolved

Referring to issues, disputes, or questions that have not been settled or concluded.

Arbitrator

A neutral third party who is brought in to resolve a dispute between two parties, making a decision that is usually binding.

Senior Management

High-level executives who are responsible for managing the overall operations and resources of a company or organization.