The adjusting entry needed on December 31 will be Debit Salaries Expense $5400; Credit Salaries Payable $5400
Debit may be defined as the amount which is subtracted from a particular account and credit may be defined as the amount added to a particular account. According to the question
The per day expense of salary = $1800 and the Salary is paid every Monday for preceding week of 5 days. The year ends on 31 December that is the day is Wednesday, which means 3 days salary that is alary of Monday, Tuesday and Wednesday will be liability outstanding at year end on 31 December and will be paid on upcoming Monday which will fall in next year.
Therefore, the Salary for current year for 3 days will be
$1800 X 3 = $5400 will be liability for current year.
Now, according to the rule all expenses are debited Salaries Expense will be debited with $5400 on 31 December and all liabilities have credit balance Salaries Payable will be credited as an outstanding liability with $5400 on 31 December.
Learn more about Liabilities at:
brainly.com/question/12928168
#SPJ4
