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E-1
APPENDIX E
REVERSING ENTRIES
Ex. E–1
a. (1) Sales Salaries Expense ............................................. 7,050
Salaries Payable ................................................... 7,050
Accrued salaries ($11,750 ÷ 5 days = $2,350;
$2,350 × 3 days).
(2) Accounts Receivable ................................................. 51,300
Fees Earned .......................................................... 51,300
(2) Fees Earned ................................................................ 51,300
Accounts Receivable ............................................ 51,300
(2) Accounts Receivable ................................................. 25,000
Fees Earned .......................................................... 25,000
(2) Fees Earned ................................................................ 25,000
Accounts Receivable ............................................ 25,000
Reversing entry.
Ex. E–3
a. (1) Payment (last payday in year)
(3) Closing
(5) Payment (first payday in following year)
APPENDIX E Reversing Entries
Ex. E–3 (Concluded)
b. (1) Wages Expense .......................................................... 15,400
Cash ....................................................................... 15,400
(2) Wages Expense .......................................................... 9,250
(4) Wages Payable ........................................................... 9,250
(5) Wages Expense .......................................................... 14,800
Cash ....................................................................... 14,800
Ex. E–4
a. (1) Payment (last payday in year)
(2) Adjusting (accrual of wages at end of year)
(4) Reversing
(5) Payment (first payday in following year)
(2) Salaries Expense ....................................................... 13,200
(4) Salaries Payable ......................................................... 13,200
(5) Salaries Expense ....................................................... 24,000
Cash ....................................................................... 24,000
