A company pays each of its two office employees each Friday at the rate of $100 per day for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is: Multiple Choice Debit Unpaid Salaries $600 and credit Salaries Payable $600. Debit Salaries Expense $600 and credit Salaries Payable $600. Debit Salaries Expense $400 and credit Cash $400. Debit Salaries Payable $400 and credit Salaries Expense $400. Debit Salaries Expense $400 and credit Salaries Payable $400.

Debit Salaries Expense $400 and Credit Salaries payable $400.

Explanation:

Consider, we are told the company pays each of its two office employees, meaning, the 2 employees combine will earn $200 a day .

Furthermore, we are told that even though the monthly accounting period ends on Tuesday the two employees work on Monday and Tuesday, meaning, the adjusting entry to record at the month-end will be a summation of the amount earned by the two employees on the two days.  That is, = $200 × 2 days  = $400  (which is a salary expense).

Therefore, going by the rule of double-entry, we are obliged to debit salaries expense account and credit salaries payable account.

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