Sheldon Company had $500 for one day of accrued salaries on December 31 of the prior year. On January 4 of the current year, total salaries for the five-day week are paid. The journal entry to record the payment of salaries on January 4 includes:

a. Credit to Salaries Payoble for $500; Debit to Salaries Expense for $2,000
b. Debit to Salaries Payable for $500; Credit to Salaries Expense for $2,000
c. Debit to Salaries Payable for $500; Debit to Salaries Expense for $2,000
d. Credit to Salaries Payable for $500; Credit to Salaries Expense for $2,000

The correct answer is option (C).

Explanation:

According to the scenario, given data are as follows:

Salary ( daily) = $500

So salary for 4 days of January.1 to Jan.4  = 4 × $500 = $2,000

As salary of 1 day is payable in December and salary of 4 days are payable in January, Hence the Journal entries can be recorded as follows:

Journal Entries

Date       Particulars                        Debit              Credit

Jan.4    Salary expense(Dr)         $2,000  

                  Salary payable(Dr)               $500  

                  Cash                                                           $2,500

answer; ///blank(1); dealers; blank(2); brokers;