What is an example of an entry that records the payment of salaries by a business?

Question

Debit salary expense and credit cash

Debit cash and credit salary expense

Debit salary expense and credit owner’s equity

Debit liabilities and credit salary expense

Answer 1

The correct journal entry to record the payment of salaries by a business is:

Debit Salary Expense and Credit Cash

This entry reflects the expense incurred for salaries (which increases the salary expense account) and the cash outflow for paying those salaries (which decreases the cash account).