Example of t-accounts, Accounting Basics

Assignment Help:

Q. Example of T-accounts?

Suppose that the last day of December 2010 falls on a Monday this expense account doesn't show salaries earned by employees for the last day of the month. Nor does any account illustrate the employer's obligation to pay these salaries. The T-accounts pertaining to salaries emerge as follows before adjustment

385_Example of T-accounts.png

Prerequisite salaries are USD 3600 for four weeks they are USD 900 per week. Meant for a five-day workweek daily salary is USD 180. Micro Train formulates the following adjusting entry on December 31 to accrue salaries for one day

2122_Example of T-accounts1.png

Subsequent to adjustment the two T-accounts involved appear as follows

1430_Example of T-accounts2.png

The debit in the regulating journal entry brings the month's salaries expense up to its correct USD 3780 amount for income statement purposes. The credit to Salaries Payable files the USD 180 salary liability to employees. The balance sheet illustrates salaries payable as a liability. Another instance of a liability/expense adjustment is when a company incurs interest on a note payable. The debit would exist to Interest Expense and the credit would be to Interest Payable.


Related Discussions:- Example of t-accounts

Illustrate periodic inventory procedure, Q. Illustrate Periodic inventory p...

Q. Illustrate Periodic inventory procedure? Companies by means of periodic inventory procedure make no entries to the Merchandise Inventory account nor do they maintain unit re

What is marketable securities, Q. What is Marketable securities? Market...

Q. What is Marketable securities? Marketable securities are temporary investments such like short-term ownership of stocks and bonds of other companies. Such investments don't

Fifo under periodic inventory procedure, Q. FIFO under periodic inventory p...

Q. FIFO under periodic inventory procedure? The FIFO (first-in, first out) method of inventory costing suppose that the costs of the first goods purchased are those charged to

Balance sheet, 1.A business man strated business with 100million on the ba...

1.A business man strated business with 100million on the bank account obtained as a retirement package, 2.He used part of the money and bought a building worth 60 million, 3.He let

Office equipment for cash, Purchased trucks and office equipment for cash ...

Purchased trucks and office equipment for cash Metro paid USD 20000 cash on behalf of two used delivery trucks and USD 1500 for office equipment. Office equipment and Trucks ar

How to deal barter transactions?, How to create account for barter transact...

How to create account for barter transactions? As My Company is providing a service to another company and that company is reimbursing us with his service.

Controller - chief accountant, Controller: Controller another name for Chi...

Controller: Controller another name for Chief Accountant is generally the head of the whole region of accounting, including internal audit. He is generally in charge of all types

Skills for the long haul, The decision has been made: You [Tracy] have opte...

The decision has been made: You [Tracy] have opted to start your career by joining an international accounting firm. But you can't help wondering if you have the right skills both

Merchandise inventories, Carrying amounts of merchandise materials as well ...

Carrying amounts of merchandise materials as well as supplies inventories are generally determined on a moving average cost basis and are stated at the lower of cost or market.

Database management system - accounting perspective, Q. Database management...

Q. Database management system - accounting perspective? A database management system stores related data-such like monthly sales data products, salespersons, customers and sale

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd