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:

Intravenous (IV) Morphine

The administration of morphine, a potent opioid pain medication, directly into a vein for rapid pain relief.

Naloxone (Narcan)

A medication used to reverse the effects of opioid overdose, often administered in emergency situations.

Respiratory Rate

The number of breaths an individual takes within a minute, an important vital sign used to assess respiratory function.

Aroused

The state of being awakened or stimulated, either physically or emotionally.