At October 31, Nathan Company made an accrued expense adjusting entry of $1,400for salaries. Prepare the reversing entry on November 1, and indicate the balances in Salaries
Payable and Salaries Expense after posting the reversing entry.
Would this answer be right???
Nov. 1 Salaries Payable 1,400
Salaries Expense 1,400
The balances after posting the reversing entry are Salaries Expense (Cr.) $1,400 and Salaries Payable $0.
Yes, the answer you provided is correct. On November 1, to reverse the accrued expense entry made on October 31, you would debit Salaries Payable for $1,400 and credit Salaries Expense for $1,400.
After posting the reversing entry, the balances would be:
- Salaries Expense: $1,400 as a credit balance
- Salaries Payable: $0 as the entry reversed the liability and removed it from the books.