APPENDIX B
REVERSING ENTRIES
Ex. B–1
a. (1) Sales Salaries Expense.............................................
Salaries Payable ...................................................
Accrued salaries ($11,750 ÷ 5 days = $2,350;
$2,350 × 3 days).
7,050
(2) Accounts Receivable ................................................
Fees Earned ..........................................................
Accrued fees earned.
51,300
b. (1) Salaries Payable ........................................................
Sales Salaries Expense .......................................
Reversing entry.
7,050
(2) Fees Earned ...............................................................
Accounts Receivable ...........................................
Reversing entry.
51,300
7,050
51,300
7,050
51,300
Ex. B–2
a. (1) Wages Expense .........................................................
Wages Payable .....................................................
Accrued wages ($66,000 ÷ 5 days).
13,200
(2) Accounts Receivable ................................................
Fees Earned ..........................................................
Accrued fees earned.
25,000
b. (1) Wages Payable ..........................................................
Wages Expense ....................................................
Reversing entry.
13,200
(2) Fees Earned ...............................................................
Accounts Receivable ...........................................
Reversing entry.
25,000
13,200
25,000
13,200
25,000
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 .........................................................
Cash ......................................................................
15,400
(2) Wages Expense .........................................................
Wages Payable .....................................................
Accrued wages.
9,250
(3) Income Summary.......................................................
Wages Expense ....................................................
809,250
(4) Wages Payable ..........................................................
Wages Expense ....................................................
Reversing entry.
9,250
(5) Wages Expense .........................................................
Cash ......................................................................
14,800
15,400
9,250
809,250
9,250
14,800
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 .......................................................
Cash ......................................................................
22,000
(2) Salaries Expense .......................................................
Salaries Payable ...................................................
Accrued salaries.
13,200
(3) Income Summary.......................................................
Salaries Expense..................................................
1,213,200
(4) Salaries Payable ........................................................
Salaries Expense..................................................
Reversing entry.
13,200
(5) Salaries Expense .......................................................
Cash ......................................................................
24,000
22,000
13,200
1,213,200
13,200
24,000