Use the following to answer questions 13 – 14 The company incurs employee salaries of $75,000 for the last week of December which will be paid on January 5th. 13. Record the adjusting entry on December 31st related to the employee salaries Account Debit Credit Indicate by how much net income in the income statement is higher or lower if the adjustment in #13 is not recorded (if lower put ““ in front of your 14. $ answer).
Use the following to answer questions 13 – 14 The company incurs employee salaries of $75,000 for the last week of December which will be paid on January 5th. 13. Record the adjusting entry on December 31st related to the employee salaries Account Debit Credit Indicate by how much net income in the income statement is higher or lower if the adjustment in #13 is not recorded (if lower put ““ in front of your 14. $ answer).
Chapter4: The Adjustment Process
Section: Chapter Questions
Problem 7EA: Reviewing payroll records indicates that employee salaries that are due to be paid on January 3...
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Transcribed Image Text:Use the following to answer questions 13 – 14
The company incurs employee salaries of $75,000 for the
last week of December which will be paid on January 5th.
13. Record the adjusting entry on December 31st related to
the employee salaries
Account
Debit
Credit
14. $
Indicate by how much net income in the
income statement is higher or lower if the adjustment in
#13 is not recorded (if lower put
answer).
“in front of your
Expert Solution
Step 1
Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized income or expenses for the period is adjusted in accounts by adjusting entry at the end of the accounting period to correctly measure the net income.
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