Please advise on journal entries/ t accounts for the below journal transaction affecting cash, salary expense and salary payable? $23,000 in cash was paid during the year for salaries to employees, and the ending balance in salaries payable on Dec. 31, 2020 was $2,000.

Please advise on journal entries/ t accounts for the below journal transaction affecting cash, salary expense and salary payable? $23,000 in cash was paid during the year for salaries to employees, and the ending balance in salaries payable on Dec. 31, 2020 was $2,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Payroll Entries

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll processes form the bedrock of every organization as it contains sensitive information on the ‘wage and paycheck’ portion of the company’s strength—its employees. The organization needs to keep a track of the employees currently on the payroll, the net payout for the company, the record of transactions related to the employees including deductions and payroll taxes to identify the liability and its effect on the balance sheet (and other financial statements). Payroll records also include qualitative factors such as the conduct of the employee.

Question

Please advise on journal entries/ t accounts for the below journal transaction affecting cash, salary expense and salary payable?

$23,000 in cash was paid during the year for salaries to employees, and the ending balance in salaries payable on Dec. 31, 2020 was $2,000.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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