Bentley Records Adjusting Entries at Its December 31 Year End

question 79

Multiple Choice

Bentley records adjusting entries at its December 31 year end. At December 31, employees had earned $12,000 of unpaid and unrecorded salaries. The next payday is January 3, at which time $30,000 will be paid. Prepare the journal on January 3 to record payment assuming the correct adjusting and reversing entries were made on December 31 and January 1.

• A) Debit Salaries expense $12,000; debit Salaries payable $18,000; credit Cash $30,000.
• B) Debit Salaries expense $30,000; credit Cash $30,000.
• C) Debit Salaries payable $30,000; credit Cash $30,000.
• D) Debit Salaries expense $18,000, debit Salaries payable $12,000; credit Cash $30,000.
• E) Debit Salaries expense $18,000; credit Cash $18,000.

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Definitions:

Domestic Products

Goods and services that are produced within a country's borders and are intended for consumption in the same country.

Foreign Market

A market outside the company's home country where it conducts business activities or sells products.

Adaptations

Modifications or adjustments made to a product, strategy, or approach to better fit a specific market or set of requirements.

Subsidiary Control

The influence and regulatory mechanisms wielded by a parent company over its subsidiaries' operations and policies.