A Business Pays Salaries of $140 000 on the First

Multiple Choice

A business pays salaries of $140 000 on the first and fifteenth day of every month. Which of the following is the adjusting entry required on 30 June 2014?

A) A debit of $140 000 to Salaries expense and a credit of $140 000 to Salaries receivable.
B) A debit of $140 000 to Salaries expense and a credit of $140 000 to Salaries payable.
C) A debit of $140 000 to Salaries receivable and a credit of $140 000 to Salaries payable.
D) No adjusting entry is required.