APPENDIX B

REVERSING ENTRIES

Ex. B–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
Accrued fees earned.

b. (1) Salaries Payable ........................................................ 7,050

Sales Salaries Expense ....................................... 7,050
Reversing entry.

(2) Fees Earned ............................................................... 51,300

Accounts Receivable ........................................... 51,300
Reversing entry.

Ex. B–2

a. (1) Wages Expense ......................................................... 13,200

Wages Payable ..................................................... 13,200
Accrued wages ($66,000 ÷ 5 days).
(2) Accounts Receivable ................................................ 25,000
Fees Earned .......................................................... 25,000
Accrued fees earned.

b. (1) Wages Payable .......................................................... 13,200

Wages Expense .................................................... 13,200
Reversing entry.
(2) Fees Earned ............................................................... 25,000
Accounts Receivable ........................................... 25,000
Reversing entry.

B-1
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 APPENDIX B Reversing Entries

Ex. B–3

a. (1) Payment (last payday in year)

(2) Adjusting (accrual of wages at end of year)

(3) Closing

(4) Reversing

(5) Payment (first payday in following year)

b. (1) Wages Expense ......................................................... 15,400

Cash ...................................................................... 15,400
(2) Wages Expense ......................................................... 9,250
Wages Payable ..................................................... 9,250
Accrued wages.
(3) Income Summary....................................................... 809,250
Wages Expense .................................................... 809,250
(4) Wages Payable .......................................................... 9,250
Wages Expense .................................................... 9,250
Reversing entry.
(5) Wages Expense ......................................................... 14,800
Cash ...................................................................... 14,800

B-2
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 APPENDIX B Reversing Entries

Ex. B–4

a. (1) Payment (last payday in year)

(2) Adjusting (accrual of wages at end of year)

(3) Closing

(4) Reversing

(5) Payment (first payday in following year)

b. (1) Salaries Expense ....................................................... 22,000

Cash ...................................................................... 22,000
(2) Salaries Expense ....................................................... 13,200
Salaries Payable ................................................... 13,200
Accrued salaries.
(3) Income Summary....................................................... 1,213,200
Salaries Expense.................................................. 1,213,200
(4) Salaries Payable ........................................................ 13,200
Salaries Expense.................................................. 13,200
Reversing entry.
(5) Salaries Expense ....................................................... 24,000
Cash ...................................................................... 24,000

B-3
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.