APPENDIX B

REVERSING ENTRIES
Ex. B1
a. (1) Sales Salaries Expense..............................................
Salaries Payable.....................................................
Accrued salaries ($3,475 3).

10,425

(2) Accounts Receivable..................................................

Fees Earned............................................................
Accrued fees earned.

19,850

b. (1) Salaries Payable..........................................................

Sales Salaries Expense.........................................
Reversing entry.

10,425

(2) Fees Earned.................................................................

Accounts Receivable.............................................
Reversing entry.

19,850

10,425

19,850

10,425

19,850

Ex. B2
a. (1) Wages Expense...........................................................
Wages Payable.......................................................
Accrued wages ($25,900/5).

5,180

(2) Accounts Receivable..................................................

Fees Earned............................................................
Accrued fees earned.

36,100

b. (1) Wages Payable............................................................

Wages Expense......................................................
Reversing entry.

5,180

(2) Fees Earned.................................................................

Accounts Receivable.............................................
Reversing entry.

36,100

173

5,180

36,100

5,180

36,100

Ex. B3
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........................................................................

27,000

(2) Wages Expense...........................................................

Wages Payable.......................................................
Accrued wages.

16,200

(3) Income Summary.........................................................

Wages Expense......................................................

1,416,200

(4) Wages Payable............................................................

Wages Expense......................................................
Reversing entry.

16,200

(5) Wages Expense...........................................................

Cash........................................................................

27,000

174

27,000
16,200

1,416,200
16,200

27,000

Ex. B4
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........................................................................

17,500

(2) Salaries Expense.........................................................

Salaries Payable.....................................................
Accrued salaries.

7,000

(3) Income Summary.........................................................

Salaries Expense...................................................

917,000

(4) Salaries Payable..........................................................

Salaries Expense...................................................
Reversing entry.

7,000

(5) Salaries Expense.........................................................

Cash........................................................................

17,500

175

17,500
7,000

917,000
7,000

17,500