Assume that the weekly payroll of Blank Canvas Art Supply is $ 360. December 31, end of the year, falls on Tuesday, and Blank Canvas will pay its employee on Friday for the full week. What adjusting entry will Blank Canvas make on Tuesday, December 31? (Use five days as a full workweek.)

Explanation:

The journal entry is shown below:

Salary expense Dr $72

         To Salary payable $72

(Being the salary expense is recorded)

The computation is shown below:

= Weekly payroll ÷ Number of days in a week

= $360 ÷ 5 days

= $72

While recording this adjusted journal entry we debited the salary expense and credited the salary payable

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