Accounting

  Salary payable refers to the amount of salary that a company owes to its employees but has not yet paid. It represents a liability on the company's balance sheet until the salaries are actually disbursed. When a company recognizes that it owes salaries to its employees, it records a salary payable entry in its accounting records. Here's a detailed explanation along with journal entry examples for better understanding: Journal Entry for Salary Payable: Recognition of Salary Expense: When the company incurs the cost of salaries for its employees, it recognizes the salary expense. This is typically done at the end of the accounting period or when the salaries for that period are due. Journal Entry:                     Salary Expense Dr. To Salary Payable Debit Salary Expense: This represents an increase in expenses and is recorded on the income statement. Credit Salary Payable: This recognize...

  The sales order process involves various steps from the initial customer order to the final recognition of revenue and collection of payment. Below is an end-to-end description of journal entries for the sales order process, along with detailed examples: 1. Customer Order: When a customer places an order, no financial transactions are recorded. This stage represents a commitment to sell but does not impact the accounting records. 2. Sales Order Creation: Once the sales order is created based on the customer's request, the following journal entry is made: Copy code Debit: Accounts Receivable  Credit: Sales Order Revenue (Unearned Revenue) This entry recognizes the commitment to deliver goods or services and establishes a liability until the revenue is earned. 3. Order Fulfillment and Shipment: As the company fulfills the order and ships the goods or provides the services, no financial transactions are recorded at this stage. 4. Delivery and Customer Acceptance: When the cu...