Adjusting Entry Oct.

31 Salaries Expense Salaries Payable $1,400 $1,400

Reversing Entry Nov. 1 Salaries Payable Salaries Expense $1,400 $1,400

The books should zero out after the adjusting entry is made on October 31st. Salaries Payable is a liability account. Therefore, it does not reset. Salaries Expense will have a zero balance on the account while the Salaries Payable will have a $1,400 credit. After the reversing entry is made on November 1st, the Salaries Payable account should have a zero balance due to the debit entry of $1,400 to offset the credit entry made on October 31st. Salaries Expense should have a credit of $1,400 because it was zeroed out at the end of the month.