Cody company hired 5 employees on December 3 with wages totaling $1500 per month
ID: 2373034 • Letter: C
Question
Cody company hired 5 employees on December 3 with wages totaling $1500 per month. Cody typically pay its employees the fifth day of the following month. As a result, what adjusting entry should Cody make at the end of December?
A. Debit salaries payable $1500; Credit salaries expense $1500
B. Debit salaries expense $1500, Credit salaries payable $1500
C. Debit salaries expense $1500, Credit cash $1500
D. Debit cash $1500, Credit salaries payable $1500
E. No adjusting entry is needed until the employees are paid.
Explanation / Answer
C. Debit salaries expense $1500, Credit cash $1500