During the Year,Cheng Company Paid Salaries of $24,000

question 113

Multiple Choice

During the year,Cheng Company paid salaries of $24,000.In addition,$8,000 in salaries has accrued by the end of the year but has not been paid.The year-end adjusting entry would include which one of the following?

• A)Debit to Salaries Expense for $32,000.
• B)Credit to Salaries Expense of $8,000.
• C)Debit to Salaries Payable for $24,000.
• D)Credit to Salaries Payable for $8,000.

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Definitions:

Payable

The amounts of money that a company owes to vendors or creditors for goods or services received that have not yet been paid.

Bearer

The individual in possession of an instrument, such as a check or promissory note, that is not made out to a specific payee.

Conditional Endorsement

An endorsement on a document or instrument subject to specific conditions or restrictions.

Payment

The act of satisfying a debt or obligation, usually by transferring funds to settle the amount owed.