Describe your knowledge and understanding of journal entries.

Question

Accepted Answer

Understanding journal entries is crucial for accurate payroll accounting and financial reporting.

Journal entries record financial transactions in the accounting system.
Each entry consists of a date, accounts affected, amounts, and a description.
For payroll, entries typically include debits to salary expense and credits to cash or payroll liabilities.
Example: Paying an employee $1,000 would involve a debit to Salary Expense and a credit to Cash.
Adjusting entries may be needed for accrued wages or payroll taxes.