The employees of Neat Clothes work Monday through Friday. Every other Friday the company issues payroll checks totaling $23,000.

 The employees of Neat Clothes work Monday through Friday. Every other Friday the company issues payroll checks totaling $23,000. The current pay period ends on Friday, July 3. Neat Clothes is now preparing quarterly financial statements for the three months ended June 30. What is the adjusting entry to record accrued salaries at the end of June?

Answer

 

Explanation

Amount accrued: $23,000 × 7/10 (7 days of 10 days to be paid) = $16,100

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