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.