At the End of the Current Fiscal Year,an Analysis of the Payroll

question 55

Multiple Choice

At the end of the current fiscal year,an analysis of the payroll records of Bev Company showed accrued salaries of $22,200.The Accrued Salaries Payable account had a balance of $32,000 at the end of the current fiscal year,which was unchanged from its balance at the end of the prior fiscal year.The books of the company have not yet been closed.The entry needed in this situation would include a

• A) debit to Retained Earnings of $9,800.
• B) credit to Retained Earnings of $9,800.
• C) debit to Accrued Salaries payable of $9,800.
• D) debit to Salaries Expense of $9,800.

---

Definitions:

Creditor

An entity (person or institution) that lends money or extends credit to another entity, with the expectation of being repaid in the future.

Debtor's Debt

Debtor's debt refers to the monetary obligation owed by a debtor to a creditor, resulting from a loan or another credit agreement.

Real Property

Land and anything permanently attached to it, such as buildings and structures.

Mortgage

A secured loan agreement where property or real estate is used as collateral for borrowing money.