Excalibur Frequently Has Accrued Expenses at the End of Its

question 110

Essay

Excalibur frequently has accrued expenses at the end of its fiscal year that should be recorded for proper financial statement presentation. Excalibur pays on a weekly basis and has $50,000 of accrued salaries incurred but not paid for June 30, its fiscal year-end. This consists of one day's accrued salaries for the week. Excalibur will pay its employees $250,000 on July 4; the one day of accrued salaries and the remaining four days for July salaries. Record the following entries:
(a) Accrual of the salaries on June 30.
(b) Payment of the salaries on July 4, assuming that Excalibur does not prepare reversing entries.
(c) Assuming that Excalibur prepares reversing entries, reverse the adjusting entry made on June 30.
(d) Assuming that Excalibur prepares reversing entries, payment of the salaries on July 4.

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Definitions:

Protons

Positively charged subatomic particles found in the nucleus of an atom, determining the element's identity and some of its properties.

Electron Transport

A series of chemical reactions that transfer electrons from electron donors to electron acceptors via redox reactions, coupled with the transfer of protons (H+ ions) across a membrane.

Glycolysis

A metabolic pathway that breaks down glucose into pyruvate, releasing energy and producing ATP, taking place in the cytoplasm of cells.

Porphyrin Ring

A large, heterocyclic macrocycle composed of four modified pyrrole subunits interconnected via methine bridges, central to the function of molecules like hemoglobin and chlorophyll.