(See attached file for full problem description)
P2-4A A review of the ledger of Greenberg Company at December 31, 2002, produces the
following data pertaining to the preparation of annual adjusting entries.
1. Salaries Payable $0. There are eight salaried employees. Salaries are paid every Friday for
the current week. Five employees receive a salary of $750 each per week, and three employees
earn $500 each per week. December 31 is a Tuesday. Employees do not work weekends.
1. Salaries Payable
The total salary is 750X5+500X3=$5,250 per week ( for 5 days). Dec 31 is a tuesday, so we need to account for 2 days of salary. This is 5250/5 X 2 =$2,100
The adjusting entry is
Salary Expense Dr 2,100
Salalry Payable Cr 2,100
2. The Nov 1 contract has run for 2 months ...
The solution explains how to make the adjusting journal entries based on the period end details.