Immediately after recording the first payroll in January of 2022, the accountants discovered that $500,000 of accrued salaries from 2021 were not recognized in 2021. Instead, they were recognized when they were paid in 2022. The January 2022 journal entry necessary to correct this error would include: a. No entry, the error has self corrected b. Debit Retained Earnings $500,000 c. Debit Salaries Expense $500,000 d. Credit Salaries Payable $500,000

Immediately after recording the first payroll in January of 2022, the accountants discovered that $500,000 of accrued salaries from 2021 were not recognized in 2021. Instead, they were recognized when they were paid in 2022. The January 2022 journal entry necessary to correct this error would include: a. No entry, the error has self corrected b. Debit Retained Earnings $500,000 c. Debit Salaries Expense $500,000 d. Credit Salaries Payable $500,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 16E: Dudley Company failed to recognize the following accruals. It also recorded the prepaid expenses and...

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In January 2021, Barton Enterprises discovered that none of the required salaries expense accruals at the end of the following periods were recorded: 2019 Accrued salaries should have been $20,000 2020: Accrued salaries should have been $40,000 Both years are closed. What correcting entry should be made in 2021 to correct these errors? OA Debit Credit Salaries payable Retained earnings OD OB. The errors are counterbalanced at the end of 2020 amd no correcting OC Debit 40.000 Retained earnings Salaries payable Retained earnings Salaries payable 20,000 Salanes expense Retained earnings Salaries payable Debit 20.000 Debit 40.000 20,000 entries are needed. Credit 40,000 Credit 20,000 Credit 20,000 20,000
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