I am in a Financial Accounting class and I'm having trouble with one of the transactions that the professor is asking us to put on a journal.
"April 12- Hired park manager at a salary of $4,000 per month, effective May 1st"
I'm confused because the problem states that "These selected transactions occured during April. So, should I do a Debit to Salary expense, credit to Salary Payable? Or should I just not include it in the journal because the manager doesn't start until the 1st of May? Please help! I would really appreciate it, thanks!
2007-09-09 13:45:49 · 7 answers · asked by Jepensepa 2 in Business & Finance ➔ Other - Business & Finance
Effective May 1st means the new employee does not start until May 1st. So no accounting entry to be recorded in April.
April 12 is just the date its approved and the future park manager has about 2 - 3 weeks before he or she actually starts working.
2007-09-09 13:52:02 · answer #1 · answered by Andy 3 · 1⤊ 0⤋
Salaries are usually put on the books when earned and the park manager doesn't start until May 1. He was only hired in April. The only time you would put a payable on the books is when you need financials and wages have been earned for that period but not paid-like at year end.
2007-09-09 13:53:00 · answer #2 · answered by towanda 7 · 1⤊ 0⤋
ur april entries will not be recorded for this transaction as it is effective from 1st May. May journal entries will be;
debit Salary expense, credit cash/cash at bank
2007-09-12 00:26:33 · answer #3 · answered by SmartPlayer 2 · 1⤊ 0⤋
There would be no entry. If the guy doesn't start until May 1 then you would not owe him anything (payable) on a financial statement dated April 30th.
2007-09-09 13:51:19 · answer #4 · answered by Luv2Answer 7 · 1⤊ 0⤋
It wouldn't be included since the payments won't happen until May and you are only recording April transactions
2007-09-09 13:51:48 · answer #5 · answered by tiggerwmu99 2 · 0⤊ 0⤋
Clark invested $20000 cash in her business.
2016-10-26 07:21:36 · answer #6 · answered by Naimur 1 · 0⤊ 0⤋
thnx buddies for these answers ...........
my problem also solved
2014-10-15 04:46:44 · answer #7 · answered by Anonymous · 0⤊ 0⤋