Questions: As of December 31, employees had earned 1,600 of unpaid and unrecorded salaries. The next payday is January 4, at which time 2,000 of salaries will be paid. Record the required adjusting entry, if any. Note: Enter debits before credits.

To record the required adjusting entry for the unpaid and unrecorded salaries as of December 31, you need to recognize the expense that has been incurred but not yet paid. This is done by debiting the Salaries Expense account and crediting the Salaries Payable account. The adjusting entry ensures that the financial statements accurately reflect the expenses and liabilities as of the end of the accounting period.

Here is the adjusting entry:

\[ \begin{array}{|c|l|l|l|} \hline \text{Date} & \text{Account Title} & \text{Debit} & \text{Credit} \\ \hline \text{December 31} & \text{Salaries Expense} & \$1,600 & \\ \hline & \text{Salaries Payable} & & \$1,600 \\ \hline \end{array} \]

Explanation:

• Salaries Expense (Debit \$1,600): This entry recognizes the expense that has been incurred by the company for the work employees have done up to December 31. It ensures that the expense is recorded in the correct accounting period, following the accrual basis of accounting.

• Salaries Payable (Credit \$1,600): This entry records the liability that the company owes to its employees as of December 31. It reflects the obligation to pay these salaries in the future, specifically on the next payday, January 4.

By making this adjusting entry, the company's financial statements will accurately reflect the salaries expense and the corresponding liability as of the end of the year.