Flagg Records Adjusting Entries at Its December 31 Year End

Multiple Choice

Flagg records adjusting entries at its December 31 year end.At December 31,employees had earned $12,000 of unpaid and unrecorded salaries.The next payday is January 3,at which time $30,000 will be paid.Prepare the January 1 journal entry to reverse the effect of the December 31 salary expense accrual.

A) Debit Salaries expense $12,000;credit Salaries payable $12,000.
B) Debit Salaries expense $18,000;debit Salaries payable $12,000;credit Cash $30,000.
C) Debit Salaries payable $18,000;credit Cash $18,000.
D) Debit Salaries payable $12,000,credit Salaries expense $12,000.
E) Debit Salaries expense $18,000;credit Salaries payable $18,000.