Journal Entry Review Questions 3

Q48. Review questions 3
(1) Entity A recorded annual depreciation expense of $4,300.
(2) Entity B accrued $9,200 salaries expense to be paid on the 5th of the following month.
Prepare journal entries to record these transactions.

A48. Depreciation and salaries expense

(1) Depreciation expense = $4,300

  Debit Credit
Depreciation expense 4,300  
     Accumulated depreciation   4,300

Increase in accumulated depreciation (contra-asset): credit

(2) Salaries expense accrued during the period = $9,200

  Debit Credit
Salaries expense 9,200  
     Salaries payable   9,200

Increase in salaries payable (liability): credit