Question

multiple choice question
by the end of the accounting period, employees have earned salaries of $500, but they will not be paid until the following pay period. which of the following is the proper adjusting entry?
credit salaries expense for $500.
debit salaries payable for $500.
credit unearned revenues for $500.
debit salaries expense for $500.
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Explanation:

Step1: Identify accrued expense type

This is an accrued salary expense (incurred but unpaid).

Step2: Apply accrual accounting rules

Accrued expenses require debiting the expense account to recognize the cost, and crediting a liability account (Salaries Payable). The only correct partial entry among the options is debiting Salaries Expense for $500.

Step3: Eliminate incorrect options

• Credit Salaries expense: Incorrect, expenses are increased with debits.
• Debit Salaries payable: Incorrect, this would reduce the liability, not record the accrual.
• Credit Unearned revenues: Incorrect, unearned revenues relate to prepayments, not accrued expenses.

Answer:

D. Debit Salaries expense for $500.