321 Salaries, Wages and Commissions Payable
Liabilities
Accrued
Synopsis
Account 321 is established to record amounts payable to or accrued for employees in the form of Salaries, Wages and Commissions.
Debits |
Credits |
|
|
Example 1
Record the accrual for payroll for the last three days of the month that will not be paid until the following month $18,180.
Journal: Payroll Journal
Entry: |
|
Debit |
Credit |
Account 021-01 |
Salaries – Supervision – New Vehicles Department |
$600 |
|
Account 021-02 |
Salaries – Supervision – Used Vehicles Department |
$400 |
|
Account 021-03 |
Salaries – Supervision – Lease & Rental Department |
$400 |
|
Account 021-05 |
Salaries – Supervision – Mechanical Department |
$900 |
|
Account 021-06 |
Salaries – Supervision – Body Shop Department |
$500 |
|
Account 021-07 |
Salaries – Supervision – Parts & Accessories Department |
$750 |
|
Account 021-09 |
Salaries – Supervision – General Administrative |
$950 |
|
Account 022-01 |
Salaries – Clerical – New Vehicles Department |
$865 |
|
Account 022-02 |
Salaries – Clerical – Used Vehicles Department |
$425 |
|
Account 022-03 |
Salaries – Clerical – Lease & Rental Department |
$300 |
|
Account 022-05 |
Salaries – Clerical – Mechanical Department |
$825 |
|
Account 022-06 |
Salaries – Clerical – Body Shop Department |
$250 |
|
Account 022-07 |
Salaries – Clerical – Parts & Accessories Department |
$240 |
|
Account 022-09 |
Salaries – Clerical – General Administrative |
$1,250 |
|
Account 023-01 |
Salaries – Other – New Vehicles Department |
$450 |
|
Account 023-02 |
Salaries – Other – Used Vehicles Department |
$250 |
|
Account 023-03 |
Salaries – Other – Lease & Rental Department |
$225 |
|
Account 023-05 |
Salaries – Other – Mechanical Department |
$2,000 |
|
Account 023-06 |
Salaries – Other – Body Shop Department |
$600 |
|
Account 023-07 |
Salaries – Other – Parts & Accessories Department |
$1,200 |
|
Account 023-09 |
Salaries – Other – General Administrative |
$250 |
|
Account 247A |
Inventory – Work in Process – Mechanical |
$3,000 |
|
Account 247B |
Inventory – Work in Process – Body Shop |
$1,500 |
|
Account 321 |
Salaries, Wages & Commissions Payable |
|
$18,130 |
Example 2
Record the accrual of salespersons commissions at month-end in the amount of $75,000 of which $48,000 is new vehicle commission and $27,000 is used vehicle commission.
Journal: Payroll and General Journal
Entry: |
|
Debit |
Credit |
Account 011-01 |
Vehicle Salespeople Compensation & Other – New Vehicles Department |
$48,000 |
|
Account 011-02 |
Vehicle Salespeople Compensation & Other – Used Vehicles Department |
$27,000 |
|
Account 321 |
Salaries, Wages & Commissions Payable |
|
$75,000 |
Comments
A credit balance represents unpaid salaries, wages and commissions earned by employees.