Answer:
Debit salary expense $12,000, credit salary payable $12,000
Explanation:
Adjusting entries are used to represent accrued expenses and income at the end of a fiscal period.
The expenses and incomes need to be recognised to get a true picture of the financial state of the business.
In this scenario amount spent on salaries daily
Daily salary= 30,000 ÷ 5 = $6,000
Salary for Monday and Tuesday
Salary for two days= 6,000 * 2= $12,000
To recognise the expense we debit the Salary expense account
The amount is not being paid to the workers till Friday so we credit Salary payable pending when it will be credited to worker's account
