Question

(LO2,3) Dresser Company’s weekly payroll, paid on Fridays, totals \(8,000. Employees work 5-days week. Prepare Dresser’s adjusting entry on Wednesday, December 31, and the journal entry to record the \)8,000 cash payment on Friday, January 2.

Short answer

The total for both debit and credit sides is $12,800.

Step-by-step solution

Meaning of the Journal Entry

The journal entry is used to record thebusiness transaction in the accounting system for an organization. In a journal entry, the debits and credit should be equal and at the end of the journal entry.

Journal Entries

The adjusting entry on December 31 and the journal entry to record the cash payment on January 2 are as follows:

Journal Entries
Date	Accounts Titles and Explanations	Debit	Credit
Dec 31	Salaries and wages expenses	$ 4,800
	Salaries and wages payable		$4,800
Jan 2	Salaries and wages payable	$ 4,800
	Salaries and wages expenses	$ 3,200
	Cash		$ 8,000

Working notes:

Salaries and wages payable = ($ 8,000 × 3/5) = $ 4,800

Salaries and wages expenses = ($8,000- $4,800) = $ 3,200