On the basis of the following data, (a) journalize the adjusting entries at June 30, the end of the current fiscal year, and (b) journalize the reversing entries on July 1

On the basis of the following data, (a) journalize the adjusting entries at June 30, the end of the current fiscal year, and (b) journalize the reversing entries on July 1, the first day of the following year:

1. Wages are $13,200 per day for a five-day workweek, ending on Friday. The last payday of the year was Thursday, June 27.

2. Accrued fees earned but not recorded at June 30, $25,000.


Answers:

a. (1) June 30 Wages Expense............................................. 13,200
Wages Payable.......................................... 13,200
Accrued salaries ($13,200 × 1 day).
(2) 30 Accounts Receivable....................................... 25,000
Fees Earned................................................ 25,000
Accrued fees earned.
b. (1) July 1 Wages Payable................................................ 13,200
Wages Expense.......................................... 13,200
Reversing entry.
(2) 1 Fees Earned................................................... 25,000
Accounts Receivable.................................... 25,000
Reversing entry.