On the basis of the following data, (a) journalize the adjusting entries at December 31, the end of the current fiscal year Sales salaries are $2,350 per day for a five-day workweek, ending on Friday.

On the basis of the following data, (a) journalize the adjusting entries at December 31, the end of the current fiscal year, and (b) journalize the reversing entries on January 1, the first day of the following year:

1. Sales salaries are $2,350 per day for a five-day workweek, ending on Friday. The last payday of the year was Friday, December 26.
2. Accrued fees earned but not recorded at December 31, $51,300.


Answers:

a. (1) Dec. 31 Sales Salaries Expense.................................... 7,050
Salaries Payable.......................................... 7,050
Accrued salaries ($2,350 × 3 days).
(2) 31 Accounts Receivable....................................... 51,300
Fees Earned................................................ 51,300
Accrued fees earned.
b. (1) Jan. 1 Salaries Payable............................................. 7,050
Sales Salaries Expense................................. 7,050
Reversing entry.
(2) 1 Fees Earned................................................... 51,300
Accounts Receivable.................................... 51,300
Reversing entry.