Understanding Accrued Salaries

Oct 13, 2025 by wbrum.org 27 views

Journal Entry Worksheet: Accrued Salaries

Understanding Accrued Salaries

Accrued salaries refer to the salaries earned by employees but not yet paid. This is a common occurrence in businesses, especially at the end of the year when employees have worked but their salaries have not been paid yet. As of December 31, the salaries of $\$6,000$ are earned by employees but not yet paid. In this journal entry worksheet, we will learn how to record this transaction in the general journal.

Recording Accrued Salaries in the General Journal

To record accrued salaries in the general journal, we need to follow the accounting equation: Assets = Liabilities + Equity. In this case, the accrued salaries are an asset because they are earned but not yet paid. We will debit the asset account "Accrued Salaries" and credit the liability account "Salaries Payable" or "Accrued Expenses".

Journal Entry

Transaction	General Journal	Debit	Credit
a.		Accrued Salaries	Salaries Payable

Explanation

Debit: Accrued Salaries ($6,000) - This is an asset account that represents the salaries earned by employees but not yet paid.
Credit: Salaries Payable ($6,000) - This is a liability account that represents the amount of salaries that are owed to employees but not yet paid.

Why Accrued Salaries is Debit and Salaries Payable is Credit

Accrued Salaries is debited because it is an asset account that represents the salaries earned by employees but not yet paid. Salaries Payable is credited because it is a liability account that represents the amount of salaries that are owed to employees but not yet paid.

Example

Let's say a company has 10 employees who earn a salary of $\$600$ each. As of December 31, the employees have worked for 30 days and have earned a total of $\$18,000$ . However, the company has not paid the salaries yet. To record this transaction in the general journal, we would debit Accrued Salaries ($18,000) and credit Salaries Payable ($18,000).

Conclusion

Accrued salaries are a common occurrence in businesses, especially at the end of the year when employees have worked but their salaries have not been paid yet. To record accrued salaries in the general journal, we need to debit the asset account "Accrued Salaries" and credit the liability account "Salaries Payable" or "Accrued Expenses". This journal entry worksheet has provided a step-by-step guide on how to record accrued salaries in the general journal.

Accrued Salaries Journal Entry Worksheet

Transaction	General Journal	Debit	Credit
a.		Accrued Salaries	Salaries Payable

Discussion Category: Business

This journal entry worksheet is relevant to the discussion category of business because it deals with the recording of accrued salaries in the general journal. Accrued salaries are a common occurrence in businesses, and it is essential to record them correctly in the general journal to ensure accurate financial reporting.

Key Takeaways

Accrued salaries refer to the salaries earned by employees but not yet paid.
To record accrued salaries in the general journal, we need to debit the asset account "Accrued Salaries" and credit the liability account "Salaries Payable" or "Accrued Expenses".
Accrued Salaries is debited because it is an asset account that represents the salaries earned by employees but not yet paid.
Salaries Payable is credited because it is a liability account that represents the amount of salaries that are owed to employees but not yet paid.

References

Accounting Standards Codification (ASC) 505-10, Accounting for Certain Acquired and Issued Debt Securities
Financial Accounting Standards Board (FASB), Accounting Standards Codification (ASC)
American Institute of Certified Public Accountants (AICPA), Accounting Research Bulletins (ARBs)
Journal Entry Worksheet: Accrued Salaries Q&A

Understanding Accrued Salaries

Q&A

Q1: What is accrued salaries?

A1: Accrued salaries refer to the salaries earned by employees but not yet paid.

Q2: Why is it necessary to record accrued salaries in the general journal?

A2: It is necessary to record accrued salaries in the general journal to ensure accurate financial reporting. Accrued salaries are a common occurrence in businesses, and it is essential to record them correctly in the general journal to ensure that the financial statements are accurate and reliable.

Q3: How do I record accrued salaries in the general journal?

A3: To record accrued salaries in the general journal, you need to debit the asset account "Accrued Salaries" and credit the liability account "Salaries Payable" or "Accrued Expenses".

Q4: Why is Accrued Salaries debited and Salaries Payable credited?

A4: Accrued Salaries is debited because it is an asset account that represents the salaries earned by employees but not yet paid. Salaries Payable is credited because it is a liability account that represents the amount of salaries that are owed to employees but not yet paid.

Q5: What is the difference between Accrued Salaries and Salaries Payable?

A5: Accrued Salaries is an asset account that represents the salaries earned by employees but not yet paid. Salaries Payable is a liability account that represents the amount of salaries that are owed to employees but not yet paid.

Q6: How do I determine the amount of accrued salaries to record in the general journal?

A6: To determine the amount of accrued salaries to record in the general journal, you need to calculate the total amount of salaries earned by employees but not yet paid. This can be done by multiplying the number of employees by their daily salary and then multiplying the result by the number of days worked.

Q7: What are the key takeaways from this journal entry worksheet?

A7: The key takeaways from this journal entry worksheet are:

Accrued salaries refer to the salaries earned by employees but not yet paid.
To record accrued salaries in the general journal, you need to debit the asset account "Accrued Salaries" and credit the liability account "Salaries Payable" or "Accrued Expenses".
Accrued Salaries is debited because it is an asset account that represents the salaries earned by employees but not yet paid.
Salaries Payable is credited because it is a liability account that represents the amount of salaries that are owed to employees but not yet paid.