FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Adjusting, Closing, and Reversing Entries
Prepare adjusting, closing, and payroll entries for wages using two methods.
- Wages paid during 20-1 are $24,080.
- Wages earned but not paid (accrued) as of December 31, 20-1, are $240.
- On January 3, 20-2, payroll of $920 is paid, which includes the $240 of wages earned but not paid in December.
1. Prepare the entries without making a reversing entry.
Transcribed Image Text:Adjusting Entry: 12/31/-1
Closing Entry: 12/31/-1
Payment of Payroll: 1/3/-2
2. Prepare the entries with the use of a reversing entry.
Adjusting Entry: 12/31/-1
Closing Entry: 12/31/-1
Reversing Entry: 1/1/-2
Payment of Payroll: 1/3/-2
II II 1I I
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