The Adjusting Entry to Record the Salaries Earned Due to Employees

question 8

Multiple Choice

The adjusting entry to record the salaries earned due to employees for services provided but unpaid at the end of the accounting period affects the accounts in which of the following ways?

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

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Definitions:

Trust Indenture

A trust indenture is a legal agreement in a bond contract that outlines the responsibilities of the bond issuer and the rights of the bondholders.

Unamortized Discount

The portion of a bond discount that has not yet been amortized (expensed) over the life of the bond.

Retirement

The point in time when an individual chooses to leave the workforce permanently, usually associated with reaching a certain age or financial security.

Par Value

The face value of a bond or the stock value stated in the corporate charter, which is typically a minimal amount not reflective of the market value.