What is the difference between salaries payable and salaries expense

Salary payable can be attributed to the type of payroll journal entry that shall be used to record in the books of account the compensation which shall be paid to the employees.

It is usually included in the current liabilities on the balance sheet as it is expected to be paid within one year. Salaries do not appear directly on a balance sheet , because the balance sheet only covers the current assets, liabilities and owners equity of the company. Any salaries owed by not yet paid would appear as a current liability, but any future or projected salaries would not show up at all.

The difference between salaries payable and salaries expense is that the expense encompasses the full amount of salary -based compensation paid during a reporting period, while salaries payable only encompasses any salaries not yet paid as of the end of a reporting period.

What is the journal entry for wages payable? Here is the wages payable journal entry. Later in January when the wages are paid, the employer would debit the wages payable account because the wages are no longer owed to the employees and credit the cash account for the amount of cash paid to the employees. Is rent expense an asset? Under the accrual basis of accounting, if rent is paid in advance which is frequently the case , it is initially recorded as an asset in the prepaid expenses account, and is then recognized as an expense in the period in which the business occupies the space.

Are expenses an asset? Bookkeeping for expenses In double-entry bookkeeping, expenses are recorded as a debit to an expense account an income statement account and a credit to either an asset account or a liability account, which are balance sheet accounts.

Wages payable is a liability account that shows the amount that the company owes to employees for hours they have already worked, but for which the company has not yet issued a paycheck. This account directly corresponds to the wages expense account. Usually the company pays the wages payable to the employees in the pay period following the one in which the work was recorded.

The primary difference between wages expense and wages payable lies in the type of accounts that they are. Wages expense is an expense account, whereas wages payable is a current liability account. A current liability is one that the company must pay within one year. Employee Salaries, Wages and Bonuses are cumulatively referred to a ' Payroll ' and represents a major cost to a Business.

Someone who is paid wages gets paid a certain amount for each hour worked. The company computes Wages of an Employee by taking the Pay rate per hour x Number of hours worked. Salaries provide consistency with Fixed paychecks whereas Wages tend to fluctuate based on the number of hours worked. People earning Wages are entitled to Overtime if they work more than 40 hours per week.

Overtime pay is typically time-and-a-half for each hour after the first 40 hours. While people who make a Wage may earn overtime, there are a few disadvantages to the wage based payment structure. Salaries usually pay more for work of the same type. Is salaries payable a liability? Which of the following groups contain only accounts that normally have credit balances? Salaries payable is an example of?

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