In a journal entry for accrued salaries at period end, which accounts are typically affected?

• A. Debit Salaries Expense and Debit Cash
• B. Credit Salaries Expense and Credit Salaries Payable
• C. Debit Salaries Expense and Credit Salaries Payable
• D. Debit Cash and Debit Salaries Payable

Answer: (C)

Accrual accounting requires recognizing salaries as an expense in the period they are earned and recording the corresponding obligation to pay. The proper adjusting entry for unpaid salaries is to debit Salaries Expense to reflect the cost of work performed, and credit Salaries Payable to show the liability to employees. This setup ensures the expense is matched to the period and the liability is recorded until payment is made. When paying, you would later debit Salaries Payable and credit Cash.

The other options don’t fit this timing and nature: debiting Cash would imply cash already left the company; crediting Salaries Expense would reduce the expense that was incurred; debiting Cash with a debit to Salaries Payable would improperly increase both assets and liabilities.