What entries are required to record $45,000 in salaries earned between March 27 and March 30 but not paid until April 6?

When recording salaries that have been earned but not yet paid, it is essential to recognize the salary expense in the period it was incurred. In this scenario, employees have earned $45,000 in salaries between March 27 and March 30, which means the expenses need to be acknowledged in the financial records for March, even though the actual cash payment occurs later, on April 6.

The entry to properly reflect this situation involves debiting salary expense to show that the company has incurred this expense for the work completed during the specified dates. Debiting salary expense increases the expense account, which reflects the true cost of operations in that accounting period.

Simultaneously, because the salaries have not yet been paid, the company must recognize a liability by crediting salary payable. This reflects the amount owed to employees, indicating that the company has an obligation to pay this salary in the future.

Thus, the combination of debiting salary expense and crediting salary payable accurately represents the financial situation: it shows the expense incurred in the period when the work was performed and establishes the liability for the payment that will occur later. This aligns with the accrual basis of accounting, which dictates that expenses should be recorded when they are incurred rather than when they are paid.