Question

Prospect Realty Co. pays weekly salaries of $13,220 on Friday for a five-day workweek ending on that day. CHART OF ACCOUNTS Prospect Realty Co. General Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance 15 Land 16 Equipment 17 Accumulated Depreciation-Equipment LIABILITIES 21 Accounts Payable 22 Unearned Fees 23 Salaries Payable 24 Taxes Payable EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends REVENUE 41 Fees Earned EXPENSES 51 Advertising Expense 52 Insurance Expense 53 Rent Expense 54 Salaries Expense 55 Supplies Expense 56 Utilities Expense 57 Depreciation Expense 59 Miscellaneous Expense

Answer 1

Below is the Journal entry

	Debit	Credit
Salaries Expense	$7,932.00
Salaries Payable		$7,932.00

Calculation assuming that Accounting period ends on wednesday

So Salaries Expenses = 13,220 x 3/5 = $7,932