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.

---

Definitions:

Culture

The amassed beliefs, behaviors, knowledge, norms, language, values, and material objects that are passed down from generation to generation within a human group.

Animals

Animals are multicellular, eukaryotic organisms in the biological kingdom Animalia, characterized by their ability to move voluntarily, consume organic material, breathe oxygen, and reproduce sexually.

Humans

Biological beings belonging to the species Homo sapiens, characterized by their advanced cognitive abilities and complex social structures.

Deliberate System

The Deliberate System refers to the cognitive process that is analytical, conscious, and rational, often requiring more time and effort than instinctive or automatic responses.