Juniper Tree Service Has a Weekly Payroll of $50,000

question 127

Essay

Juniper Tree Service has a weekly payroll of $50,000.December 31,2018 falls on Thursday and Juniper will pay its employees the following Monday (January 4,2019)for the previous full week.Assume that the company has a five-day workweek and has an unadjusted balance in Salaries Expense of $845,000 at December 31.Prepare the December 31,2018 adjusting entry.

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Definitions:

Net Income

The amount of money a company effectively earns as profit after reducing its revenue by expenses and taxes.

Trial Balance

A worksheet for accounting where the total balances of all ledgers are arranged into equal debit and credit columns.

Trial Balance

A report that lists all the balances of a company's general ledger accounts to verify that debits equal credits.

Common Stock

A type of equity security that represents ownership in a corporation, with holders having voting rights and potentially receiving dividends.