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Chapter 4: 7TI-2 (page 208)

Winters Landscape Services accrued \(4,000 of Salaries Expense at December 31. Winters paid the next payroll at January 10 of

\)6,000. This payment included the accrued amount at December 31, plus $2,000 for the first few days of January.

24A. Record the reversing entry.

Short Answer

Expert verified

Reversing entry is as follows:

Date

Accounts and Explanation

Debit

Credit

Jan. 1

Salaries Payable

$4,000

Salaries Expense

$4,000

To reverse the salaries adjusting entry.

Step by step solution

01

Explanation on Reversing Entry

Reversing entry is recorded to record the reverse effect of previous entry made in the books of accounts.

02

Explanation on Reversal Entry

Reversal entry will be recorded by debiting salary payable and crediting salaries expense by $4,000, respectively.

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